The Bank of England’s Monetary Policy Committee (MPC) is meeting this week on Thursday. This meeting will have the committee members discussing the economic outlook, the current economic situation, the inflation rate, and what to do about it all in regards to the standard base interest rate. Experts couldn’t be more divided or expecting such different outcomes for this meeting or those to follow throughout the year.

There is no denying that many households have been struggling with their household budgets. Brexit has left some undesirable outcomes for many trying to keep their financial situation under control. For homeowners, experts encourage them to seek a lower interest rate with a remortgage to save money and feed their starving household budget or it could get worse.

The demand for remortgaging has been strong in recent months. Homeowners have found a way to escape paying higher interest rates found on their lender’s standard variable rate (SVR). When a homeowner’s current mortgage deal ends, if there is not a remortgage, then the lender moves the loan to a SVR. By getting a remortgage, a homeowner doesn’t have to pay more on their repayments than they are used to paying.

Recent information released from UK Finance has revealed that homeowners are still showing strong demand for remortgaging. There has also been demand for mortgage lending from first time buyers. The data released from the month of May revealed 30,720 new first time buyers completed mortgages which was 0.5% more than the same month last year. Remortgaging was 19.7% more than May 2018.

According to experts there is a large wave of homeowners that are due to have their mortgage deal end come October. They are encouraging homeowners that are coming to the end of their mortgage deal to consider a remortgage. Without a remortgage, a homeowner will be moved to their lender’s standard variable rate (SVR). For those homeowners, an SVR could be double or more the rate they are used to paying.

The housing market has remained resilient despite the worry of Brexit and the impact it could have on the economy. Home buyers haven’t been scared off as they discover low interest rate mortgages and home sellers willing to make a deal with more attractive asking prices. According to Halifax, in June the average house price increased by 0.3%.