Inflation POLL: Are you trying to remortgage early over fears of soaring interest rates? | Personal Finance | Finance

The Bank of England increased interest rates to 1.75 percent in August in a bid to tackle soaring inflation. As a result, borrowing is more expensive and saving is more rewarding, meaning Britons are being encouraged to get a fixed-rate mortgage.

Samuel Mather-Holgate of the Swindon-based advisory firm, Mather & Murray Financial, said: “If you have a mortgage, or are looking to borrow some money, my advice would be to lock in your rate now.

READ MORE: Britons urged to ‘lock in mortgage rate now’ as inflation soars

“If you prefer certainty, lock in for a long period as interest rates are still historically low, despite them increasing.” 

However, fixed-rate mortgage holders could end up paying more for longer should inflation and interest rates drop. 

He continued: “A word of caution though; when inflation falls back to normal levels, in six months’ time, and the recession is in full swing, the Bank of England will be forced to cut interest rates. We just don’t know by how much yet.”

LMS’ monthly remortgage data for June showed some 67 percent of Britons who remortgaged took out a five-year fixed rate product. 

Meanwhile, 30 percent remortgaged in order to lower their monthly payments. 

CEO of LMS, Nick Chadbourne, said: “It could be that more consumers are looking to secure longer term fixed rate products to improve financial security and manage the cost of living struggles. 

“As this crisis intensifies further and fears of a recession mount, this trend is likely to continue and the industry will need to cope with increased demand.” 

So how about YOU? Are you trying to remortgage early over fears of soaring interest rates? Vote in our poll and leave your thoughts in the comment section below.