The Bank of England’s Monetary Policy Committee (MPC) is expected to make another increase to the standard base interest rate in the next few months if not as soon as May. The possibility of higher interest rates is pushing more demand from those considering high borrowing levels such as home buyers seeking a mortgage and homeowners in need of a remortgage. By taking action before an increase occurs borrowers could save thousands of pounds.

Remortgage activity is currently bustling and the slowdown looks like it will not happen anytime soon. With a potential May interest rate increase just around the corner, many house owners are seeking relief in the cost of the monthly mortgage before rates finally go up. Many experts predict this might not be the only rate rise for the year 2018. Although activity is buzzing, the type of remortgage obtained is not in line with recent trends. During the month of February, two year remortgage deals were sought out in higher frequency than five year deals. This trend is taking a turn not seen at this level since July.

The icy temperatures of the winter are being shaken off in exchange for robust activity within the remortgage sector, according to the latest data regarding the UK housing market. Home owners came out in droves during the month of February and increased approvals year on year by more than 11% for the month. Approvals totaled £6bn for the second month of the year and set a mark for February not seen in years. Not only have house owners been racing to lender offices in search of remortgage deals ahead of a possible interest rate hike next month, first time buyers and buy to let landlords are also stampeding to remortgage.

Remortgage is not the only type of mortgage lending which is powering the market through the first and second quarters of this year. First time buyers have also been on a tear through the first few months of the year in what many are describing as a race to obtain lending prior to another hike in interest rates. Housing experts still see great likelihood that another interest rate increase will take place in the beginning weeks of next month during the May meeting of the Bank of England Monetary Policy Committee.

Remortgage is currently one of the hottest options for many UK house owners ahead of a possible increase in interest rates in early May. Owners have few courses of action relative to home ownership as conditions within the market change. They can move home and potentially reduce the amount of monthly mortgage payment which is required. Or, they can stay in the home and obtain a remortgage in search of reducing outgoings. Landlords have similar options in considering their future. Many are now remortgaging their properties in order to make renovations and improvements.

Many UK housing market experts see this year as one which will end with little growth in house prices. The forecast is scattered with periods of challenging times this year and no real progression forward. Factors leading to these types of opinions include Brexit negotiations, taxes, and slowly rising wages. There are however areas of the housing market which are refusing to be challenged or slow down. Those areas are the rental sector and remortgage.