After months of lacklustre house price growth, the UK housing market posted an impressive number for the month of March. House prices increased in value 1.5% to bring on a new record set for average house price across the country. That benchmark is now sitting at £227,871 and is higher than we have ever seen before for an average house price, according to Halifax. What was expected to be a slow start to the year within the housing market has eclipsed that mark and placed an explanation point at the end.

New data should be released soon as to the latest compiled information on remortgage lending. Even before the Bank of England’s Monetary Policy Committee (MPC) started dropping hints of an upcoming increase to the standard base rate, remortgage lending was in high demand. Homeowners were awakened when the MPC increased the rate for the first time in years in November 2017. At the point that the rate started to see increases, it was evident there would likely be more, and the next one is expected in May.

A rise in interest rates is coming according to many close to the UK housing market. It will begin as a hike in the standard base rate which now sits at 0.5%. Some are expecting the base rate to increase 0.25%. Most are expecting a rate rise, but some are now starting to hesitate with such a confident feeling since the inflation rate has fallen a bit to 2.7% from 3.0%. With so much talk, one would believe level of optimism would be sitting at a lower level than in previous times. Just the opposite is now taking place and residents are feeling confident about carrying on.

During the last meeting of the Monetary Policy Committee, a vote was held as it is held each month regarding a hike in the base rate. The outcome was 7-2 in favor to leave the base rate where it now resides, 0.5%. Although many in and around the UK housing market are expecting interest rates to increase at the beginning of next month, there is now a chance the base rate will remain at 0.5%. This is good news for those looking to purchase a home in the coming weeks, but unfortunate news for those looking to benefit with a better savings rate.

UK home owners are currently sitting in a period prior to a potential rate increase. This alone is cause for stress and burden and leaves them searching for the best possible route to take from here. Some home owners are holding a tracker mortgage, or maybe a standard variable rate mortgage. There are also some holding a mortgage which will mature shortly leaving them with the door open to decide on another type of mortgage loan going forward. Experts see this time as a potentially great opportunity to consider a remortgage.

Borrowers are likely to face higher interest rates in the next few months compared to what is available now according to experts. Currently, though the rates are higher than seen this time last year when the Bank of England’s standard base rate was only 0.25%, there are very attractive mortgages and remortgages available from lenders. What is available now from lenders might be on the way out if there is a rate increase in May or shortly afterwards.