Remortgage if Rates Rise

New research claims that seven million people will opt to remortgage if the Bank of England ups interest rates by 0.5 per cent this week.The poll reveals that a quarter of mortgage borrowers affected by the January interest rate rise is now financially stretched and facing the choice between selling or remortgaging. The survey also found that seven million home owners would re-mortgage if a rate rise increased repayments by up to £100 per month, and 2.6 million would have to remortgage if repayments increased by up to £50 per month.Phillip Evans, of Enable Finance, said: "The impending rate rise is of concern. We feel it could even be a 0.50% rise which, according to the survey results will drive an alarming number of people into financial difficulty, which may result in rising house repossessions

"Home owners on a £150,000 interest-only tracker mortgage face additional costs of £750 per year, or £62.50 per month, for every half per cent that interest rates rise.Mortgage Borrowers concerned about these figures should consider a fixed rate remortgage to manage their monthly expenditure. A good start is always a chat with your qualified mortgage broker who will guide you through your solutions.