Remortgage now and fix your interest rate long term

Over the last two and a half years customers have been finding that their fixed rate deals taken out during the property boom have finally come to an end. They’ve been reverted to the Standard Variable Rate, which was often much lower in interest and monthly payments than their previous deal. 

Customers have been facing with the dilemma of when to fix their mortgage again, this time at lower rates, or to just stay paying the variable rate as long as they can, whilst it remains at low levels. There are online college classes you can take to help you understand how the market works if you feel the need to learn more in depth about it. Some people gambled on fixing early, and have now regretted that move as interest rates have stayed at record lows for nearly three years, whilst others are still waiting for the right time to remortgage and fix their rate.

It is important to know when the best time to remortgage is. The best time to remortgage and fix your interest rate would be the week before the lenders start increasing their interest rates, in preparation for a base rate increase. 

If you can fix your interest rate at 5% now for the next five years, and interest rates rose by 3 or 4% in the next few years you would be much better off, than if you’d stayed on a standard variable rate, or opted for a tracker remortgage.

We saw a huge pick up in the number of people remortgaging just before the Euro crisis, which knocked back any chance of interest rates being increased. There are further signs around now that rates could be set to rise, and the increase in borrowing costs between banks has already led to some lenders increasing their Standard Variable Rate.

The SVR at major lenders Halifax is set to go up by 0.5%, whilst RBS have increased theirs by 0.25% with other lenders set to follow in the next few months.

One of the biggest advantages of fixing your interest rate by remortgaging now is the peace of mind one has. At a time when budgeting is so important for so many families you can fix your rate for 2,3 or 5 years and know exactly how much you’ll have to pay each month during that period, without worrying about how the economy performs.

.You’ll be safe from an interest rate hike, as well as any hikes in the cost of borrowing between banks, which could increase the standard variable rate you were paying before.

Author: Michelle is a regular contributor for remortgagedeals.co.uk