Due to an incredibly low UK base interest rate, many home owners are wondering whether to remortgage or to stay on their banks Standard variable rate. With interest rates at an all time low since the 1950′s, the temptation is to sit on this low rate. What however will happen to interest rates and how did the U.K budget affect the prospects for interest rates in the U.K.
The real answer is that whilst no one knows, opinion is mixed on what will happen to interest rates this year.Maybe now is time to review your current mortgage and take some advice. It is also worth working out how increased rates will affect you, should they rise using a remortgage calculator.
It is a common opinion that interest rates should stay stable but it is imperative that you budget for a worst case scenario. Many people are taking a more cautious approach now and opting for a tied in fixed rate mortgage whilst others are hanging on to their low current rate. Remortgage.com has reported a rise in the number of enquiries of people remortgaging as of mid June.
Which option you choose should depend on your individual circumstances and ability to deal with a rise in rates over the coming months.