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    Does a rise in interest rates increase incentive to remortgage

    In the UK the Bank of England recently increased interest rates to 5.25%; this is the third rise since last summer. The effect of this is to increase substantially the cost of mortgage interest payment for those with variable or tracker mortgages. For example if you have a ?150,000 mortgage a quarter point rise will add ?43 on to a 30 year mortgage. With the rise in variable mortgage many homeowners are seeking to get a fixed rate deal. The advantage of a fixed rate deal is that you will be insulated against any further rate rises and thus it can make financial planning easier and more stable. However the big bank lenders have alread

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    this is the third rise since last summer. The effect of this is to increase substantially the cost of mortgage interest payment for those with variable or tracker mortgages. For example if you have a ?150,000 mortgage a quarter point rise will add ?43 on to a 30 year mortgage. With the rise in variable mortgage many homeowners are seeking to get a fixed rate deal. The advantage of a fixed rate deal is that you will be insulated against any further rate rises and thus it can make financial planning easier and more stable. However the big bank lenders have alread
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    h variable or tracker mortgages. For example if you have a ?150,000 mortgage a quarter point rise will add ?43 on to a 30 year mortgage. With the rise in variable mortgage many homeowners are seeking to get a fixed rate deal. The advantage of a fixed rate deal is that you will be insulated against any further rate rises and thus it can make financial planning easier and more stable. However the big bank lenders have alread
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    the rise in variable mortgage many homeowners are seeking to get a fixed rate deal. The advantage of a fixed rate deal is that you will be insulated against any further rate rises and thus it can make financial planning easier and more stable. However the big bank lenders have alread
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    ulated against any further rate rises and thus it can make financial planning easier and more stable. However the big bank lenders have already started to review their fixed rate deals and they are increasing the interest rates on their fixed rate deals accordingly.

    A key feature on the relative merits of a fixed rate mortgage is the extent to which interest rates are likely to rise further. To a large extent your guess is as good as anybody else’s. A lot depends upon the future trends of inflation and interest rates. If the recent rise in inflation was an unexpected one off, (mostly it was due to higher taxes and energy prices) then there may be little need for future interest rate rises. If th

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