Since August interest rates have risen nearly four times.
People are sure of another interest rate increase soon, with
many people predicting that the Bank of England’s base
rate will reach far as 6 per cent by the end of 2007. Consumers
can avoid these increases if they remortgage and secure to
the best mortgage deals.
Mortgage holders
whose discount fixed-rate deals are ending are thinking about
remortgaging to
a new deal. Most people are applying for a two-year fixed-rate
loan.
From Private Finance, Melanie Bien spoke futher; “People
are prepared to batten down the hatches for the next 24 months.
However, in the long term they are quite optimistic about their
financial situation, confident that they will stay in employment
and, indeed in some cases, get a pay rise.”
People who last remortgaged two years ago have come across
new policies brought forward by lenders in the interim. Many
building societies and banks are focusing on affordabiltiy
than salary multiples. Melanie stated clearly that people
will still have a chance to borrow as much money as they please,
but how much they borrow should be thought about intensively.
