The time of a higher interest rate is possibly closer than it appears. Lenders have already gone through the practice of raising rates on many of their mortgage deals in preparation of what is to come. The inevitable day is nearing which all home owners with variable rate and tracker deals keep an eye out for as time goes on. Interest rates will rise according to the Bank of England and many home owners are still not prepared for it.

House prices across the country increased in January year on year by almost 5%, according to figures from the Office of National Statistics. The data suggests the housing market has pushed through the shocking aftermath of the Brexit vote and has maintained its ability to be resilient in challenging times. What is most surprising however, is how different each region appears when viewed under a microscope. Some regions have experienced great swings in house price growth as others have remained consistent. One thing has remained a constant and that is the shortage of properties which exists in every corner.

The warnings have been issued by experts that a possible rate hike by the Bank of England’s Monetary Policy Committee (MPC) is expected in May. The MPC is expected to hold the current rate steady at 0.5% when they meet on Thursday, but in May there is a higher number of economists expecting another rate hike.

Last month lenders opened up a new opportunity to borrowers with more mortgages available with only a 5% deposit. According to Moneyfacts, there are now more mortgages being offered to homebuyers than in the last decade. This is great news for home buyers because not only are they facing a vast number of choices in mortgages, but the housing market is reporting a decline in house prices in many areas, especially in London.

For years, property values have escalated in the city of London. The capital city has seen price growth over the past decade from investment in property by foreign owners, as well as long-time residents of the UK. This has led to an affordability issue for many looking to move home closer to their place of work. It has become impossible for many to consider such a move now with the high prices of many houses. The Brexit vote has also placed constraints on further house price growth, according to many close to the housing market.

All indications are pointing to a rise in the standard base rate as early as a few weeks from now. This will create stress and strain on many household budgets which are not ready for such an increase. Lately we have seen inflation take hold and many of life’s everyday expenses go up. This is making the cost of outgoings increase each month with regard to petrol, groceries, and more. A remortgage now could be the best solution to stifling the continued rise of expenses in the home.