Home-owners poised to search out the best remortgage deals

A large number of home-owners are poised to search out the best remortgage deals on offer, should their mortgage lender decide to increase their mortgage rate, according to new study.

An industry survey which focused on bank account activity, revealed 2011 monthly mortgage repayments were at their most affordable for a decade. In addition, more than 70 per cent of borrowers have a plan in place should interest rates rise, while 80 per cent feel they have room for manoeuvre if that happens.

Home-owners however are being urged by industry experts to be pro-active and, if they are not happy with their current mortgage, contact lenders to find the best remortgage deals on offer. However, the majority of borrowers advised the survey that they do not expect the bank rate to increase this year. Housing market experts believe the Bank of England will wait until 2014 before changing the UK base rate, which has remained at 0.5 per cent for the last 3 years.

Speaking to the Daily Telegraph at the end of last month, George Bull of chartered accountants firm Baker Tilly, said: "Provided the euro survives, I believe we are unlikely to see any significant interest rate rises in the UK in 2012. However, if the euro fails, all bets on interest rates – and most other economic indicators – are off." Crisis in the eurozone and the lack of growth in the UK economy may lead lenders to remove their best remortgage deals.