The recent rise in the Bank of England’s interest rate, from 0.5% to 0.75%, appears to have increased homeowner remortgaging activity by over 25% as compared to the same period in 2017. In July 2018, statistics show that almost 47,000 homeowners completed remortgages, representing an astonishing 23% increase from July 2017.
James Wyman, a financial adviser at Lyndhurst Financial Management, a leading Hertfordshire based financial planning and advice firm says
“A number of canny homeowners decided to remortgage to the best available rates before the projected interest rate rise in August.
With Brexit looming there is so much uncertainty in the financial marketplace that it is definitely a wise move to look at every aspect of your finances and for many people owning a property and having a mortgage is one of the biggest investments they make during their lives. Borrowing rates are still very low but there’s no guarantee that they will stay in that position for as long as they have done since the financial crash of 2008.
Even with an apparently small percentage increase of 0.25% mortgage repayments can still be a problem if families are finding money is already tight. As an independent financial adviser I give our clients the broadest possible view of the products that are available to them and to help them make the best decision for their finances, both now and in the future.
I think it’s really vital to get professional advice if you’re considering remortgaging and not be swayed by anything you read on the internet, which can be very misleading and ending up costing you a lot of money.”