Bank of England interest rates 2022: why you should remortgage now

“Since December 2021, the Bank Rate has increased by 165 basis points (from 0.1% to 1.75%) but over the same period the average mortgage rate for a fixed rate LTV mortgage of 7% over two years more than doubled, rising 198 basis points, from 1.53% to 3.51%.

“Mortgage rates are likely to rise as the base rate rises, so if you’re in a remortgage window, you better remortgage today rather than tomorrow – that’s a job that could be very expensive. has reported.”

For those not quite in the remortgage window, an early remortgage might still be a better long-term option – but it’s important to consider all factors before taking the plunge.

Ms Flynn said: “Remortgaging before the end of your current contract could mean that you will have to pay an early repayment charge (ERC).

“You should compare the cost of ERC to the amount you think you can save by re-mortgaging, to make sure the early change is worth it.

She continued: “Although most mortgage agreements in the UK are valid for six months, so if your current agreement is due to expire in the next few months, you can apply for an advance mortgage.

“It allows you to secure a rate and switch when your deal comes to an end, avoiding an ERC.”

Critical eligibility factors when you remortgage include your credit rating, income and affordability, loan-to-value (LTV) ratio, and overall financial situation.

Ms Flynn said: “If you were eligible for a mortgage before, you should be able to find a mortgage deal now.



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