The interest rate increase by the Bank of England came months before it was expected. Many had thought that despite the rising inflation rate the Monetary Policy Committee would hold off on raising the standard base rate until next year. This was especially so due to the rising number of Covid-19 cases in the UK. The impact of which could cause a slowdown of consumer spending. The increase from 0.1% to 0.25% is the first in more than three years.

Experts are encouraging all homeowners to shop for a remortgage. That includes even those that are not close to having their current loan term end soon. For those that have had their mortgage term expire and have been moved to their lender’s standard variable rate or SVR, the encouragement is more of a shout. Whether far from having a term end, close to ending, or already expired, any homeowner should shop around and determine what savings are available because it could be substantial.

The housing market has been resilient through the global pandemic. Lockdowns caused a race for space as home buyers sought out more space both inside and outside the home to endure the restrictions. Renters were not the only ones looking to buy, as homeowners became home movers due to seeking a pandemic lifestyle friendly home, and the ability to secure a low interest rate mortgage.

According to figures released by UK Finance, and projecting a continued current demand over the coming weeks to the close of the year, the housing market could reach the strongest year since 2006. The strong demand in the housing market has supported the UK economy during the global pandemic and has surprised even the most optimistic experts. No one could have foreseen that the pandemic and lockdowns would start a surge of home buying.

The housing market has remained busy during the pandemic and despite the close of a major discount in the stamp duty holiday ending in September demand has not waivered. There was a rush in the housing market by those taking advantage of the final weeks of the stamp duty holiday, which in turn made any sales afterwards appear to be a downshift in October. However, November data has revealed that home buyers are still very much interested in the market.

The housing market has proved to be resilient in the last decade. Even when forecasters expect the worse and forecast gloom and doom, the housing market emerges as the hero in the role to save our economy. The impact of the pandemic was an unknown. With lockdowns and everyone forced to take on a new reality such as working, learning, eating, getting fit, and entertaining only from one’s home, it would have seemed in focus to forecast a slowed housing market, but yet buyers showed up and broke housing market records.