Homeowners 'may consider remortgaging' if rates rise

Some homeowners may give consideration to remortgage deals to save themselves money if the base interest rate is increased this week, it has been claimed.

According to price comparison site Moneysupermarket.com, there are six steps that consumers could take to moderate the impact of another interest rate rise, one of which is to remortgage.

However, the site pointed out that early redemption penalties are a factor that many borrowers could consider before remortgaging.

In the event of another rate rise this month, the savviest customers will cut out unnecessary expenditure and pay off as many debts as they can, starting with those that have the highest interest rates, according to Moneysupermarket.

Stuart Glendinning, managing director of the firm, said: "A base rate rise is inevitable sooner rather than later, but people ought not to panic.

"Review your financial situation rationally as there are several logical steps that can be taken to alleviate financial distress."

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