The Bank of England’s Monetary Policy Committee (MPC) met for their November meeting to discuss the current economic situation within the UK. They sought to forecast what was ahead in which to determine what action should be taken to provide support for an economy impacted by a global pandemic. The meeting resulted in a unanimous vote among the nine members to provide £150bn in the quantitative easing bond buying programme as the winter pandemic wave takes hold and another lockdown goes into place across England.

The Bank of England’s Monetary Policy Committee (MPC) will be meeting again this Thursday to determine what must occur with the standard base interest rate to assist the economy through the continued stresses of the global pandemic. There had been talk of the need for negative interest rates. However, most experts agree that the time for such a move is not necessary. Instead, it is expected that the rates will remain at their current historic low which was set in March.

The UK has begun another lockdown due to the further impact of the pandemic. In an attempt to slow down the spread of the virus, certain activities will be prohibited, but those looking to move home can do so. On Twitter, Housing Secretary Robert Jenrick answered a question as to whether one can move home and remarked, “The housing market will remain open throughout this period. Everyone should continue to play their part in reducing the spread of the virus by following the current guidance."

The latest report on mortgage approvals from the Bank of England has revealed they have reached the highest level since 2007. The pandemic has not harmed the dream to become a homeowner and some reports have estimated the pandemic has driven the demand from home buyers. 

The housing market was thought to suffer from the pandemic, but it appears it has actually received a boost during the Covid-19 outbreak. As families have had to stay at home more, it has spurred a desire to buy a home or move home. It is thought that home buyers are looking for a home to better suit the needs of a family forced to accept a new normal pushed upon them by a pandemic. Perhaps it is more room, or a garden, or other need.

Homeowners are expected to show stronger demand in the months ahead for remortgaging. The repayment holidays offered due to the pandemic are to end soon. Many will be coming to the completion of their mortgage terms and they will have to decide whether to remortgage or allow their loan to be moved to the lender’s risky standard variable rate (SVR). Since remortgages can offer more of a savings and security from rising rates with a fixed rate choice, homeowners should be keen to choose a remortgage.