Remortgaging - the solution to increased standard variable rates.

As lenders increased standard variable rates become a reality, Deal Direct view remortgaging as one option open to home-owners looking to avoid paying more for their home each month.

Lenders SVR rises are hitting home-owners just as the UK enters a second recession and everything from fuel to food prices are going up. As house-hold budgets become severely stretched, mortgage holders should be looking around for lenders best offers.

While several mortgage lenders such as the Halifax have now increased their rates, the mortgage-holders expected to be most badly affected will be those with a Bank of Ireland mortgage. The lender's proposed mortgage rate hike is 1.5 per cent.

The lender has announced that the SVR increase is to be made in 2 stages and is expected to hit around 100,000 customers.

Mortgage holders can expect a first stage increase form 2.99 per cent to 3.99 per cent this June, with the final stage in September taking the lender's SVR to 4.49 per cent. Bank of Ireland mortgage customers on a £200,000 mortgage will experience a repayment increase from £947 to £1,110 which is a further £163 per month.

The Bank of Ireland has advised that the increase will not affect the customers of its financial partner the Post Office customers. However for affected mortgage holders, remortgaging to a cheaper deal maybe the only way around the increased costs.

Deal Direct recommended that all SVR customers now on rates of 4.0 per cent and above seriously consider remortgaging.

Contact one of our skilled advisers today and let us source a more competitive deal for you.