Consumers 'could consider remortgaging'

Date:Monday 11th January 2010
Author: Max Freedman

Mortgage holders should consider remortgaging now in order to get a better deal, it has been stated.

With mortgage repayment rates set to increase soon, it is key for homeowners to consider shopping around for a more competitive deal, the Daily Express has reported.

Those who currently have a standard variable rate (SVR) on their loan will see their rates rise, meaning they have to pay back more each month of their mortgage.

Any homeowners who do not change their mortgage product when the existing deal comes to an end will find themselves paying back more to cover the cost of their loan.

It is estimated that a fifth of all mortgage holders are currently paying a SVR, with many opting to stay in their current contract as the Bank of England base rate has kept their payments low.

This viewpoint is backed by, which found that some people are paying back as much as 5.99 per cent on their loans, even though there are much cheaper deals on the market.