Remortgage advice – variable rate holders must heed BOE warnings.

If you have a variable rate mortgage, the advice is to start looking around for a remortgage deal to switch to.

While the BOE interest rate isn't expected to rise just yet, it will and not as far into the future as previously thought.

With this in mind, the Bank of England message for home-owners with a mortgage is not to think that rates can and will stay low forever. 

If you are on a variable deal or have a large mortgage, the best remortgage advice is to start searching for a new deal now while rates remain low.

Remember there is safety and security  in a fixed rate deal.

Last week the Bank of England called for an assessment of the likely impact of an interest rate rise on mortgage-holders.

It said that a base rate increase from 0.5% to 2.5% could cause mortgage-holders a significant and high level of distress.

Home-owners not locked into a fixed rate deal could be forced to cut essential spending on food and heating, earn more money or remortgage to a cheaper rate. During difficult economic times these things are not easy so it is better to prepare for the storm in advance and fix a low rate deal.

The BOE warning is particularly important for those on a variable rate which can increase at a lenders whim. Don't get caught out by paying more for you home that you really need to.

At present when considering remortgaging the advice is act sooner rather than later, when lenders increase funding costs kick in mortgage rates will rise.

Finding a fixed rate deal of 5 to 10 years makes sense, especially as the Bank rate is expected to increase in either 2015 or 2016. A longer term fix would enable you to ride the storm.

For remortgage advice and a low rate quote,

call Deal Direct on 0800 048 8828.