Remortgaging demand has grown due to rising interest rates. The Bank of England’s Monetary Policy Committee (MPC) has voted to increase the standard base interest rate at each of the last four consecutive meetings. The rate began its hike from a 300 plus year historic low of 0.1% in December. It was increased to 1.0% in the May meeting. Experts are warning that more increases could be ahead and homeowners should review their current mortgage and determine if a remortgage might be helpful to prepare for the financial strains ahead.

The housing market has been on an upward surging trend since the beginning of pandemic lockdowns. What was expected to slow down buyers actually spurred rapid growth in demand for property. The lockdowns created what was called a Race for Space as buyers sought out more space both inside and outside in desired property purchases.

Homeowners are showing strong demand for remortgaging. Many are seeking financial relief from both current and future economic hardships due to inflation, the war in Ukraine, and the pandemic. The high rate of inflation has caused the Bank of England’s Monetary Policy Committee (MPC) to increase the standard base interest rate during the last four consecutive meetings. The rate has increased ten-fold from 0.1% to 1.0%.

Inflation has been a main topic in the news since the end of last year. Now with the calendar narrowing in on the half-year marker of 2022, it would seem it should be less and less of a concern, but it is not. Inflation is on the path to 10% which means it will be five times the target rate of 2.0% set by the Bank of England. Warnings have come from the Bank’s Governor Andrew Bailey that there are very real hardships in store in the months ahead.

The Bank of England has increased the standard base interest rate from 0.1% to 1.0% during its last four consecutive meetings. This is a ten-fold increase in less than six months. In simple terms, borrowing is now ten times more expensive than it was this time last year. Considering that inflation is taking more money from household budgets with fuel, energy, food, and other goods costing more, higher interest rates are another financial burden. 

Once home buyers become homeowners they tend to not pay that much attention to house prices. They have their home so why should house prices concern them. Actually house prices should concern homeowners because they do still have a connection to their current situation and by staying alert they can prepare when needed and take advantage of the situation as well.