Increase in interest rates 'could see millions refinance'

Millions of homeowners may look to refinance if the interest rate goes up this month, it has been claimed.

If the last interest rate saw mortgage holders becoming stretched, a further one this month could see some selling or remortgaging, according to moneysupermarket.com.

A £100 increase in mortgage payments would make over seven million people look at remortgaging, it claimed, while 2.6 million would consider it in the event of a £50 rise.

"Anyone finding it difficult to make their mortgage repayments already (or who think they might after the next rate rise) should try to remortgage to a better deal before next Thursday," said Louise Cuming, head of mortgages for the consumer organisation.

On Thursday, the Bank of England's monetary policy committee will meet in order to decide on the appropriate base level of interest.

Currently, it stands at 5.25 - its highest value since July 2001.

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