Remortgage Now to Avoid 8% Rates!
Here at TheRateTart we've got better things to do than read the minutes of the Bank of England's Monetary Policy Committee.But according to the geeks (sorry - professional financial reporters) who did, it's looking like the Bank hasn't yet tired of dishing out the pain on mortgages and loans. This time round every member of the committee voted in favour of increasing interest rates by a quarter of a point, with some considering a half point rise.
What this means is that you shouldn't bet the house (see what we did there) against a rise to 5.75% in June, and we wouldn't fall off our seats if rates are at 6% by the end of summer.
So how do we get to 8% mortgage interest rates? If you have just got a re-mortgage to a fixed rate, discounted rate or tracker rate, then the truth is you probably will not be affected by this.
But if you are one of the 2 million people who are on their lender's Standard Variable Rate, now is most definitely the time to consider switching to a better mortgage deal. SVR is typically 2% above base rate, meaning if we do hit a 6% interest rate, you will more than likely be paying 8% on your mortgage. Not a pleasant prospect.
To ensure you've got the best mortgage rate check out TheRateTart Re-Mortgage Comparison tables. We compare deals from a large range of mortgage lenders and brokers, so you can be confident of finding a mortgage offer that suits your needs and (more importantly) your bank account.
And before those of you with big savings accounts start looking too smug, remember the banks haven't exactly been falling over themselves to pass on the interest rate rises to you.
Following the most recent interest rate rise, most providers are not planning on boosting their savings account interest rates until the beginning of June. A ploy that some sources estimate will add £6m a day to their profits.
To tell your Scrooges from your Santas, check out TheRateTart Savings Centre and get Tarting!
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TheRateTart
rate tart noun [C]
1 also card tart, card surfer
someone who continually switches credit card providers in order to get the lowest interest rates available
2 also rate surfer
someone who regularly switches savings or loan accounts in order to get the best interest rates available
rate tarting noun [U]
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