Interest rates may be about to increase again, leaving a furthering gap between the present rates and the historically low rates of yesteryear. Experts suggest that the Bank of England’s Monetary Policy Committee (MPC) could be following the same pattern they exhibited last autumn prior to the increase that occurred to the standard base rate in November 2017. The rate increase was the first move of the rate since March 2009 and doubled the rate from 0.25% to 0.50%.

Prior to the rate increase in November, the MPC was noted to be hand holding the public through the increase. There was a clear vocalization that it was time to increase the rate and slowly more members joined ranks to vote for an increase. By November the majority was reached to make the rate increase official.

The recent MPC meeting revealed very strong language from two members which is putting a forecast that in May a majority vote could be had and borrowers will be facing a possible new rate of 0.75%.

It isn’t a full conclusion that the rate will increase in May, but it will not come as a surprise if it does.

However, there are plenty of homeowners that could be caught unaware and will be forced to rush toward a remortgage. Lenders will be quickly moving those on standard variable rates (SVR) into higher interest rates reflective of the move by the MPC if it happens.

In comparison to the prior 0.25% Bank interest rate at the same time last year in May 2017 it will have been increased three fold if it increases to 0.75%. That could amount to a big hit for some household budgets.

Experts encourage those that are on their lender’s SVR to consider a remortgage sooner rather than later if a rate increase would cause a financial strain to their budget. Those on the verge of having their mortgage deal end might want to consider a new deal as well, even if a fee is involved. There are currently a large number of remortgage products available and shopping around could prove enlightening as to what is available, the savings to be found, and the savings to be lost if a homeowner waits too long.