Friday 12th January 2007
Independent mortgage expert John Charcol has advised consumers to remortgage as soon as possible to avoid increasing costs due to yesterdays Bank of England base rate hike.
The firm noted that a number of lenders have already pulled products based on the previous five per cent rate from the market and anticipates a general rise in costs for future borrowing.
Ray Boulger, senior technical manager at John Charcol, said: "Those who just want or need the security of knowing what their monthly payments will be still have a few fixed rates to choose from below five per cent."
However, he added that these are "already rapidly disappearing" and suggested that some people may prefer to remortgage to a three-year tracker instead.
A number of these are currently available with a rate of about 5.25 per cent and no fees for early repayment, Mr Boulger stated.
Many lenders were taken by surprise as nine of the last 11 base rate changes have occurred in months when the quarterly inflation report was published, John Charcol claimed.
John Charcol says it has over 200 employees, of which about half are qualified mortgage advisers.
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