Bank of England decision 'could encourage remortgaging'
The Bank of England's decision to hold the base rate of interest at
0.5 per cent for the 11th consecutive month could encourage some
borrowers to remortgage, it has been claimed.
Ray Boulger from independent mortgage adviser John Charcol
explained that increases in standard variable rate (SVR) products
could encourage more homeowners to seek better deals from other
providers.
"Anyone paying an SVR of at least 3.5 per cent, or about to revert
to one, should consider a remortgage if they have at least 20 per
cent equity in their property," he advised.
Mr Boulger added that, if property prices continue to increase,
remortgaging could become a more attractive prospect for homeowners
with a higher percentage of equity in their properties.
He also noted that there has been significant growth in the number
of different products available to borrowers, particularly in the
higher loan-to-value brackets.
Tracker mortgages will continue to be attractive to homeowners, he
commented, because interest rates are widely expected to remain low
for the next few months.