Even though interest rates are at their highest in years, consumers can expect little help with getting a mortgage refinance at this time due to several factors. The Bank of England announced that they would not lower their rates, and even though they have in the past, few banks followed suit, making it difficult for anyone to get a mortgage refinance at a decent rate over the past few months.
David Kuo, Head of Personal Finance at money website Fool.co.uk, says: “The decision by the Bank of England to keep interest rates unchanged will add to the doom and gloom felt by 31 million people. Consumers have to deal with rising fuel prices, climbing food bills and household budgets that are getting increasingly stretched. Additionally, mortgage lenders have refused to pass on the central bank’s three rate cuts since December.”
“The economy is weakening, and this poses a threat to household finances unless we take decisive action. Homeowners need to review their budgets and slash spending with immediate effect. Ideally, they should also try to squirrel away at least three months living expenses to ride out any short-term hits to their finances.”
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