Over the past few years due to the recession and financial crisis in the UK, interest rates have been at their lowest ever.

Low rates have meant that many British individuals and businesses have seen their loan and mortgage payments plummet over the last couple of years. However, the days of record low Base rates may be about to come to an end.

Over the years, the Bank of England base rate has gradually come down lower and lower. It is due to the financial crisis that rates came down to the lowest ever 0.5%, and this was to try to encourage consumer spending to help the recovery of the UK economy.

What is important about this is that the base rates of the banks follow the Bank of England base rate, so if we see an increase in the base rate, the banks rates will follow suit. So if you are on a standard variable rate mortgage product for example, your interest rates would increase with the base rate.

The circumstances that surrounded the Bank of England’s decision to slash the Base rate to its current level were unique, and they related to the global financial crisis that struck the economy in 2008. However, as Britain’s economy recovers, interest rates are likely to rise and even though the Bank of England’s Governor, Mervyn King, recently voted against such a rise, it is not expected to be long before the MPC votes to increase the Base rate.

The question is, will the interest rates increase to high levels? Of course not. Not right away. This would cause all sorts of problems within the economy, and so interest rates will be increased gradually, and the impact of the increases will be reviewed on a regular basis by the Bank of England to ensure that they are not having adverse effects.

Another compelling reason to consider switching your home loan now is that lenders seem to be gradually regaining their appetite for remortgage lending. Obtaining a mortgage over the last couple of years has been tough as banks and building societies tightened their lending criteria, but there are signs that the market is opening up once again.

By remortgaging to a fixed rate mortgage product, you can guarantee what your monthly repayments will be on your mortgage, regardless of what the market movements are. If you fix your interest rate for 5 years for example while rates are low, you could potentially be paying less than the base rate by the time you reach your second or third year.

Remortgaging is also a great way to start your own business or make improvements to your home while rates are low and lending is loosening up.

So the answer really is yes. Now is a good time to remortgage before interest rates are hiked. This can help you to avoid paying unnecessarily high levels of interest on your mortgage now and in the years to come. Make sure you shop around, as the market place is extremely competitive, and get advice if you’re unsure about any part of the remortgage process.

James writes for Just Remortgages one of the UK’s top sites for the latest remortgage rates and remortgage deals