With the Bank of England base rate at a historic low of 0.5%, many homeowners have been enjoying low mortgage interest rates since 2009. Customers who have let their initial fixed rate revert onto a Standard Mortgage Rate (SMR) or Base Mortgage Rate (BMR) may be comfortable with their current rate at the moment, as with low repayments there’s no urgency to shop around for a new deal.
But things could be changing. In a speech given in July 2015, Bank of England Governor Mark Carney said that he expects the Bank of England base rate to rise gradually from its all-time low with a target of 2% by 2017.
A higher base rate could leave existing variable rate mortgage customers facing increased repayment amounts – and as the mortgage market shifts in response to this change, customers may find that good value mortgage deals are more difficult to come by.
So if you’re looking for a new mortgage deal, what are your options?