John Charcol suggests a remortgage check

Sponsored Links

Friday 9th February 2007

Independent adviser John Charcol has suggested that borrowers should carry out a remortgage check following yesterdays interest rate decision.

While the Bank of England chose to maintain the base rate at its previous level of 5.25 per cent, John Charcol warns that this does not mean homeowners could not benefit from considering a remortgage.

Those who expect the rate to rise in coming months to as much as six per cent are advised that a short-term fixed-rate package could be a good option.

However, those who do not want to risk losing the profit of any future decrease are told that some two-year trackers with a rate of about five per cent are still available.

Ray Boulger, senior technical manager at John Charcol, said: "There is a far better choice of trackers, with the lowest two-year rate without extended early repayment charges being as low as 4.44 per cent."

Meanwhile, "a capped tracker or capped discount offers a good compromise" for borrowers who want interest rate protection without committing to a fixed rate in the current financial climate, Mr Boulger added.

Howard Archer, chief economist at analyst Global Insight, predicted that any future rise to 5.5 per cent will represent the peak value the base rate may be expected to reach.

©