The latest forecast report on inflation came from the Office of National Statistics (ONS) and revealed the fall of petrol costs has stalled expected growth in the month of August. The expectation was for inflation to grow to 10.2% which would be an increase over July’s level of 10.1%, however it was reported at 9.9% annually. This news should come as a bit of relief to those concerned about the Bank of England’s Monetary Policy Committee (MPC) perhaps pushing the standard base rate up by a significant increase.

Homeowners are showing a strong demand for remortgages. According to experts, it is a good sign that many will have found a safeguard for their financial situation in some way either big or small, but at least they have taken a strong step in weathering what could be a hardship. Despite the demand in remortgaging, there are many homeowners that either do not understand what a remortgage is, or they have a misconception of what it does. Polls are taken when rates are on the rise, and it never fails to reveal there is a lack of knowledge when it comes to the benefits of a remortgage.

Before the passing of The Queen, the Bank of England’s Monetary Policy Committee (MPC) had been scheduled to meet this week on the 15th. The meeting would have likely resulted in an increase in the standard base interest rate. As would be expected, the meeting has been postponed until the 22nd due to the mourning period. Much will be postponed as the Nation adjusts to the shocking news of loss of the Queen. The distraction will likely impact even the smallest of concerns, including business processes, and the activity of borrowers and home buyers.

The death of Queen Elizabeth yesterday has brought great sorrow to our country. It has come at a time when her constant presence, strength, and character would be a solid example of resilience during challenging times. Now the economic hardships due to come in the near future will be endured under the guidance of her son, the newly named King Charles III. A new King, a new Prime Minister, and a new and unknown economic trial is ahead, and therefore it requires an even more keen focus on what preparedness could be done to best endure.

Homeowners are shopping for remortgages and experts believe that is a smart strategy. There might be substantial savings to be found for those that could benefit from a remortgage, especially one with a fixed interest rate. Those homeowners that have had their mortgage term end and failed to remortgage were moved to their lender’s standard variable rate (SVR). Borrowers moved to a SVR could be paying on an interest rate double or more that found with a remortgage. Not only could they likely find savings now, but even more later on as they would be saved from further interest rate increases. 

Rising interest rates are a concern to borrowers, especially home buyers and homeowners. The level of increases has been fast and aggressive in an effort to thwart inflation in the UK. The Bank of England’s Monetary Policy Committee (MPC) has increased the standard base rate at each of the last six consecutive meetings. The first increase resulted from the December 2021 MPC meeting which ended the long standing historically low rate of 0.1%. In over 300 years there had not been a lower rate, and in six meetings the rate is now at the most expensive level for borrowers in decades.