What the heck are REMORTGAGES??

Current low interest on standard variable rate (SVR) mortgages could provide "a little incentive" for those considering remortgaging, according to a spokesman from Moneyfacts.

He explained that while historically, standard variables used to be around two per cent higher than other rates on offer, the current rate cuts have made these products "a good, reasonable deal".

Furthermore, he said that while previously customers were inclined to shop around for a better deal when their two-year fixed-rate deal came to an end, current rates mean that individuals may actually revert to a rate lower than their original deal.

"Some people are coming off deal rates of 4.5 per cent and reverting to an SVR of 2.5 [per cent] - bargain," he said.

The spokesman added that while mortgage rates cannot go lower than their current value, they represent an affordable deal for consumers.

A further base rate cut to 0.5 per cent on March 5th represents the lowest rate set by the Bank of England since it was established in 1694.

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