Remortgage deals to outwit rate rises

People concerned about their monthly outgoings could consider other remortgage deals to beat anticipated future interest rate rises.

The majority of consumers are expecting the Bank of England to increase the base rate at least once more at some point this year, according to a Lloyds TSB survey.

Some 77 per cent of those questioned during last month said they thought interest rates would go up again in 2007.

"Last month's interest rate rise did little to convince consumers that rates had reached a peak," said Trevor Williams from Lloyds TSB.

"In line with the prevailing opinion of the financial markets, consumers believe rates will increase further this year."

The Council of Mortgage Lenders reported recently that the number of mortgage approvals is at its lowest level since April 2006 as increases in the cost of borrowing take their toll.

MoneyExpert also revealed that two million homeowners should seek to remortgage before their fixed-rate mortgage deals come to an end and monthly repayments increase.

Some economists are predicting that the Bank will vote to hold interest rates at their current level, 5.5 per cent, this month but as an increase is expected later this year homeowners could still consider cheaper remortgage deals.

eloans.co.uk - Homeowner financial services available online - secured homeowner loans