Late last week, the Bank of England (BoE) indicated that another interest rate rise could be on the cards for as early as spring 2018 – and that homeowners should be prepared for further rate increases in the near future.
BoE Governor Mark Carney said that, if economic growth remained robust, the Bank’s Monetary Policy Committee (MPC) would increase interest rates “sooner and faster” than previously expected.
Following the comments, reports have emerged urging homeowners to consider remortgaging onto a better deal before interest rates start to rise.
The calls come after research from mortgage broker Trussle estimated that the average homeowner currently on a lender’s standard variable rate (SVR) could save as much as £4,700 a year if they remortgaged onto a new deal at today’s great rates.
Its report added that a ‘reluctance to change loan provider’ is costing UK homeowners approximately £10 billion every single year in potential cost savings.
Daniel Hegarty, of Habito, said that consumers needed to overcome “misplaced fears” that mortgages are “complicated and too time-consuming to sort out” – particularly during times when significant savings can be made.
In recent days, it has emerged that many high street lenders have already begun to increase their rates following the BoE’s surprise announcement.
A report in the Metro suggests that Halifax has increased its intermediary rates by 0.15 per cent on many home-mover and first-time buyer loans, while Nationwide has withdrawn some of its attractive fixed-rate deals in favour of new products that are around 0.95 per cent more expensive.
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