Experts have been spreading the word for many months now of the benefits available to homeowners should they choose to remortgage. This is especially true for those that choose a fixed rate remortgage. Doing so locks in the interest rate and shields the homeowner from further interest rate hikes. It also protects homeowners from the riskier and often more costly standard variable rate (SVR) they will face at the end of their mortgage term if they skip a remortgage.

During the pandemic, the rural countryside offered everything one would need or want to escape the confining surroundings of lockdowns. There was such a demand for more area both inside and outside the home that it became known as the Race for Space. Home buyers were searching for more space indoors to offer room to work from home privately, for children to study, for the family to enjoy entertainment, and for keeping fit while being banned from local gyms. Now that remote working is coming to an end, lockdowns seem to be in our past as the amenities of city life are once again in demand.

Homeowners are being warned to expect a decline in property values next year. This could be an issue for new and fairly new homeowners. As values decline, some could find themselves in negative equity. This occurs when a homeowner’s property value falls below the level of debt on the property. It could easily happen as many in the past few years could have bought their home when house prices were at record highs. 

Homeowners are facing higher repayments as the Bank of England’s Monetary Policy Committee (MPC) voted on Thursday to raise the standard base interest rate another 0.5%. In the start of December 2021, the base rate was at almost zero having remained steady for the entire year at 0.1%. Inflation growth pushed the MPC to raise the rate for the first time since the pandemic had taken hold and lockdowns began. The first increase raised the rate to 0.25% and further rate hikes during the last nine consecutive MPC meetings this year will close out the rate at 3.5%.

The latest data on inflation revealed the deepest rate of decline in the last 16 months as it fell to 10.7% in November from October’s 11.1%. It is still far from the Bank of England’s Monetary Policy Committee (MPC) set target rate of 2.0%. Therefore, Thursday’s December meeting of the MPC is still likely to bring another increase in the standard base rate of 0.5%. The rate will become 3.50% to close out the year with the ninth consecutive meeting of the MPC that resulted in a rate hike.

The week of the December meeting of the Bank of England’s Monetary Policy Committee (MPC) has arrived. The meeting will be held on the Thursday, 15th, and will likely end with another increase to the standard base interest rate. The MPC has raised the rate during each of the last eight consecutive meetings and it now sits at 3.0%. December 2022 is expected to end with the base rate at 3.5% which is remarkably higher than it was last December when the rate was first hiked from an all-time low of almost zero at 0.1%.