The amount of people that are remortgaging their homes has risen by 30% in June as home owners try to take advantage of interest rates before they go up.
The Council of Mortgage Lenders have released figures which reveal that remortgaging has reached its highest level since September 2013. The rise amounted to 31,600 remortgages – up from 24,300 in the previous month.
Home-owners who are not on fixed rate deals may well see their interest rates going up once the base rate starts to be increased. The Bank of England has stated that rates may begin to rise as early as December this year but many financial analysts don’t expect the rise until 2016.
“Notable this month is the uptick in remortgage activity among home-owners, perhaps reflecting an increased desire to lock into competitively-priced mortgage deals in advance of any rise in rates,” said Paul Smee, the director general of the CML.
“It is likely that people are now beginning to feel a rate rise is a realistic prospect, and not just a distant theoretical possibility.”
Interest rates have not risen since before the banking crisis in July 2007.
What this means is that there are over one million current homeowners who have never actually experienced interest rates being risen.
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