House prices are still growing at more than 10 per cent a year, despite the Bank of England’s efforts to cool the market by raising its base interest rate four times since last August.

That’s why the smart money is on another rise when the Bank’s monetary policy committee meets next week.

According to Nationwide Building Society, the average home now costs £181,584, a rise of more than £1,200 in just a month – and almost £17,000 up on the same time last year.

If the Bank sticks to increasing its base lending rate by 0.25 percentage points, as it has the past four times, someone buying that typical house with a £150,000 repayment mortgage could expect to pay around £22 a month more.

If it decides to get really nasty and go for a 0.50 percentage point hike, it would cost them an extra £44 – or £528 a year.

So, if you have a variable rate mortgage, or a fixed-rate deal that’s coming to an end, it could be a very good time to look into remortgaging to cut your costs.

This entry was posted on Saturday, June 2nd, 2007 at 5:40 pm and is filed under UK Mortgages, UK Personal Finance, ReMortgages. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.