Adverse Mortgages UK

More than half of British homeowners believe that interest rates will rise again before the end of the year, new research from Standard Life has claimed.

The research showed that more than half of people in the UK who own their own home believe interest rates will rise again in the next three months, on top of the 0.25 per cent increase in August to 4.5 per cent.

As a result, 17 per cent of homeowners would consider remortgaging their property if the Bank of England decided to raise rates again. A further seven per cent said they intended to remortgage their property as a direct result of the August rise.

Nearly a quarter of respondents to the survey claimed they felt they were paying too much by sticking with their current deal rather than remortgaging, while just under 30 per cent felt they could save as much as £200 per month with a better rate by remortgaging.

However, many of these people who intend to remortgage will never do so. The research showed that 42 per cent of homeowners intended to remortgage their property when they took out their first mortgage deal, but 62 per cent of these either never did so or remortgaged only once.

Just two per cent of homeowners questioned had remortgaged more than five times since taking out their first mortgage.

Andrew Boddie, head of marketing at Standard Life Bank, said: "Because of the recent interest rate rise, remortgaging is clearly front of mind for many home owners.

"We would urge anyone considering remortgaging to look beyond just the headline rate to ensure they are getting good value over the long term."


© Adfero Ltd

You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.