Rate rise 'could make remortgaging a viable option'
Published On 15 November 2006
Consumers could be poised to remortgage their houses after the latest interest rate rise, according to one online mortgage advisor.Moneypilot.co.uk economist Steve Sully says that the second rate rise of the year may not be the last in the medium-term and says it could be worth remortgaging now for some borrowers.
Citing the fact that inflation is continuing to rise, Mr Sully argued that it was important consumers kept an eye on the market.
"Inflation is not cooling as quickly as the weather so we expect that the door has been left ajar for further rate increases in early 2007," he claimed.
"Therefore, now may be the time to consider remortgaging as the cost of mortgages is likely to continue to increase in anticipation of the rate rise."
House prices in the UK rose at their fastest rate for more than a year in September, according to the latest figures from the Department for Communities and Local Government.
The average price of a home in the UK is now just under £200,000.
