Likely interest rate rise means now is a good time to remortgage

With an interest rate rise by the Bank of England seemingly inevitable, many mortgage lenders have been removing their most attractive offers from the market. This means that if you are thinking about switching to a new mortgage, there is no time like the present.

NatWest has upped its five-year fixed mortgage by 0.9%; HSBC and Barclays have increased theirs by 0.2%. Yorkshire Building Society at first vowed to keep their 0.99% two-year fix and 1.55% five-year fix, but later announced that they would be discontinuing them.

Experts seem to agree that these are not random tweaks in the market, but a definite trend. However, all is not lost as there are some bargains still to be had. So, with that in mind, the important question is, how much time do you have to decide?

The Bank of England’s monetary policy committee next meets on 2nd November, so that is a sort of a deadline - firstly for the remaining lenders to consider their rates, and secondly for prospective borrowers to take the plunge.

If you are thinking of taking out a mortgage or remortgaging, then speed is of the essence. Please do call Dave or Simon today for a detailed and confidential discussion of the market position and your own circumstances.