If you want to remortgage for whatever reason, you would do well to consider enquiring now, as interest rates are expected to rise.The 0.05% Bank of England was only introduced to aid the credit crisis which has ben the most serious in living memory.
It was intended to encourage people to borrow for such things as a mortgage and remortgage which would make the economy healthier , improve the lot of the housing market, and keep the cost of borrowing low.
However, the financial situation did not improve as intended, and although the Government hoped that it would keep the cost of mortgages and remortgages low, rates have started to rise. The Royal Bank Of Scotland only owns 30% of the company now with the other 70% being owned by the tax payer yet it.has withdraw some of the lower interest rate mortgage and remortgage products.
The Woolwich has increased the rate of some of it's fixed rate mortgages and remortgages by 0.06%.
Therefore, and the writer of this article gives no advice or recommendation, and it is up to the individual homeowner to make their own choice,now could be the ideal time to take out a remortgage before rates rise further.
There are still very good deals on offer. Most of the main building societies have tracker mortgages and remortgages, which track the Bank of England base rate,with rates from 2.99% The Abbey at present has the lowest rate for a tracker deal , closely followed by The Alliance and Leicester whose tracker deal starts at 3.09%.. The Woolwich Building Society rate for this product is currently 3.24%. We must remember that this is the rate today and could of course rise.
Fixed rates can be a suitable type of mortgage/ remortgage for many, as you know that your repayment will not change for the duration of the fixed rate.As these rates could soon go up, now is a good time to think about this type of mortgage.A fixed rate quotation will obviously sound a bit more expensive than the tracker, but it at least allows you to budget your finances by fixing the rate for a number of years.
As of today's date the Woolwich is offering the lowest fixed rate at 3.99%.
Bear in mind these rates apply at this moment in time and can change very suddenly. They are also subject to status, Income, Equity, etc.
Give some thought to obtaining a remortgage/mortgage quotation before rates increase.
As well as the above forms of mortgage/remortgage there are also capped, discount, variable and Libor linked.
If you are needing information before reaching a decision you are best to consult an expert IFA.
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