Remortgage Rates Explained

Video Duration: 2:45

In today’s free video, expert Peter O’Grady is talking about interest rates and how to get the best remortgage rates. Today Peter talks about interest rates and are they likely to increase. Understanding this will help people who are looking to find the best remortgage deals and the best remortgage rates.

Peter explain that you have to look at why interest rates are this low to begin with. Since 2007 the housing market worldwide has been hit by a massive credit crisis. Lenders where apparantly being nonchalant in how they lent to potential homeowners and investors. In cases you did not have to prove income, this could be done in several ways of which one was self certification. Self certification was supposed to be used by the self employed but it became more widely used which in some respect has spoilt its original intent, making it more difficult for the self employed to get mortgage or remortgage deals.

Banks where having to be bailed out by their governments, lenders stopped lending to each other, money just dried up. Lenders had to rebalance their books and some left the market place altogether (waiting to re enter when the time is right). So in this case it is unlikely that interest rates can go any lower, they have been at this level for the last 19 months. It has been suggested that interest rates will increase by 25 basis points in May 2011 and by the end of 2011 they could be at 1.25 above bank base rate. This could change however especially now PriceWaterHouseCoopers have suggested there could be over one million people losing their jobs within the next year in the private and public sector.

The question you have to answer is how comfortable are you on current mortgage rates? If you think rates are going to increase significantly look at fixing the rate at the earliest opportunity. As always it is advisable to speak to a professional expert when making any financial decisions, so speak to a professional when seeking any remortgage advice to ensure that you get the best remortgage deal for your personal circumstances.

To get help today complete our online form at JustRemortgages.com and you will be put in contact with a remortgage expert who can answer any questions you have and take you through all the options to ensure you find the best remortgage solution for your circumstances.

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