Are you planning to remortgage?

Over recent months many people with mortgages have decided to remortgage for one reason or another. Some have come off special deals that were valid for a limited time and have been forced to remortgage or risk the expensive of being pushed onto the lender’s standard variable rate, and others have decided to remortgage because they can get a better deal elsewhere, saving them money on their borrowing. However, a recent report has shown that there could be a dilemma now facing those planning to remortgage, as there is now confusion over what will happen with interest rates. Read more

Tags: mixed advice, remortgage, security, standard variable rate, convinced base rate, Central bank

Interest rate cuts ‘cannot be banked on’

Despite consumers anticipating that interest-rate cuts will take place throughout the year, it is likely that if further cuts are made they will be done so cautiously, one financial expert has claimed.

According to the Fairinvestment.co.uk, up to 29 per cent of consumers expect the rate to fall from the current 5.25 per cent to 4.75 per cent by the year end, while a further 27 per cent are anticipating a rate of 4.5 per cent or below.

James Caldwell, fairinvestment.co.uk director, said that consumers see the interest rate cuts as necessary to ease pressure on household budgets.

However, he said that making the decision to cut rates is not straightforward with various factors having to be taken into consideration.

“Therefore, it is likely that rates will be cut with an air of caution if there are to be further reductions this year,” Mr Caldwell concluded.

The Bank of England’s Monetary Policy Committee last voted to reduce the interest rate, from 5.5 per cent to 5.25 per cent, in February 2008.

Tags: committee, rate cuts, Bank of England's Monetary Policy Committee, cent, household budgets, money, interest rate cuts, consumers