In the most recent meeting of the Bank of England Monetary Policy Committee, the standard base rate was increased from 0.5% to 0.75%. This increase places the base rate at a level now equal to that of the rate which was present in March of 2009. This is only the second time in a decade in which the standard base rate was increased. Many close to the UK housing market were expecting such an increase, especially following the delay in the hike of interest rates during the May meeting earlier this year. Many house owners are wondering at this time, is it too late to remortgage?

The Bank of England Monetary Policy Committee during its August meeting yesterday voted to increase the standard base rate from 0.5% to the new level of 0.75%. This increase was expected by many close to the housing market since the May meeting this year resulted in a vote to keep interest rates at the same level at that time which was 0.5%. This increase in the base rate equals the rate last seen in the year 2009.

Today, the Bank of England’s Monetary Policy Committee (MPC) will vote on whether the UK economy could benefit from an increase to the standard base interest rate. If they do increase the rate it is expected that it will be increased by 0.25%. That will bring the Bank’s rate to 0.75% which will be three times the level the rate was at this time last year.

UK house prices rebounded in the month of July and increased modestly. House prices grew 0.6% month on month compared with figures in June, according to data from Nationwide. House prices were forecasted at the beginning of the year to increase only 2-3% overall for the entire year. Annual average rate of house price growth has been consistent at 2-3%. House price growth is expected to remain subdued for the rest of the year.

UK housing market figures from June indicate house owners have slowed a bit in regard to remortgage just ahead of the potential rate rise which could take place in the first days of August. Remortgages obtained during the month were down 7.3%, totaling 47,895. Typically, in the days preceding a possible rate hike, remortgages increase compared with decreasing in number. The past few months have been quite active for the remortgage sector which could be behind the lower amount of remortgage approvals completed in June.

Homeowners had been told in the first quarter of the year to be alert and remortgage to avoid paying more for their mortgage repayment than needed. In the event of an interest rate hike it could have meant thousands of pounds over the life of a mortgage and hundreds of pounds monthly lost for many homeowners. To escape paying more and not risking financial strain or a financial downfall, experts suggested that homeowners remortgage and grab a low interest rate to protect their household budget.