Today everyone is focused on enjoying the Bank Holiday and the wonderful weather it has brought to us all, but on Thursday all eyes will be on the Bank of England’s Monetary Policy Committee (MPC). The MPC will be holding their May meeting and will be voting on whether to leave the standard base interest rate as is or increase the rate. While there was strong indication that the interest rate would be hiked this month, the weaker than expected economic data reported might push off the rate hike until August.

If the MPC does hold off on the interest rate hike it will be a moment for all homeowners to take a deep breath and exhale as it will have afforded them a longer window in which to remortgage and escape higher payments.

The UK economy grew only 0.1% in the first quarter of the year and that is what many economist are using as a valid excuse for the MPC to push off the rate increase any sooner than August. Therefore many economists believe that the announcement from the MPC meeting on Thursday will reveal that the vote to keep the rate on hold was 7-2.

Should there be a majority vote by the MPC to raise the rate it will likely be an increase of 0.25% which would push the rate to 0.75%.

Homeowners considering a remortgage, especially those that have been moved to the lender’s standard variable rate might want to take heed and start shopping for a deal soon. Whether or not the MPC raises the rate now or in the months to come, economists are in agreement a rate hike is indeed expected sooner rather than later. Lenders might also begin to tighten lending or they could pull their now competitive and attractive remortgages from the market leaving homeowners paying more than they would have had to otherwise.