The interest rate for mortgages is going up so people are trying to refinance before it gets worse. Maybe they want some money out of it or maybe they just want to lock in a lower rate. Either way they usually end up with a different payment than they started with when they refinance. It’s important to make sure they can afford the new payment before doing this so they don’t put their credit in jeopardy.
Key Takeaways:
- Many homeowners may be effected if the Bank of England raises their base rate for the first time since 2007.
- Re-mortgaging is a popular option as there are competitive interest rates in the market.
- When the Bank of England raises the base rate it will assist in reducing inflation, thereby helping the economy.
“Millions of mortgage payers could face more expensive repayments if rate setters follow through on hints from the Bank of England to raise the base rate from 0.25 per cent this Thursday.”