At midday on 15th December – after much deliberation by the Monetary Policy Committee – the Bank of England announced that the interest rate in the UK has increased from 3% to 3.5%, the ninth consecutive hike since December 2021.
However, for the first time in a long time, there’s good news for homeowners
Since late October, mortgage rates have only continued to reduce, even with a base rate rise taking place in November and predictions of another increase today. Ahead of the announcement, several lenders had already announced rate reductions of up to approximately 0.4%.
Nevertheless, no one is out of the woods yet. Homeowners are still going to see an inevitable increase to their mortgage rates compared to what they may have secured two to five years ago. There’s still going to be a great deal of financial squeeze and forward planning is still crucial.
For those homeowners who are approaching renewal of their mortgage in the next six months, now is the time to begin the application for remortgaging. People can submit their mortgage application six months in advance of their remortgage date; however, having the conversation about remortgaging with a financial adviser can happen eight to nine months before a remortgage is due.
By organising remortgage options as early as possible, homeowners can prepare and plan for the inevitable increase to their mortgage cost or restructure their borrowing to assist with affordability and budgeting.
If you’re in a position to consider remortgage rates and securing the best deal possible, contact our team here.
