The housing market is expecting to be working with a new set of interest rates after the announcement of a hike on the base rate this Thursday. The Bank of England has been hinting at the increase for weeks, and many experts believe there is little to stop the rate hike from happening. This will be the first rate increase in more than a decade and many house owners are scrambling to make sure they complete the process of remortgage into a lower fixed rate mortgage before the news becomes official.

The time to complete a remortgage is now for those who own property and are looking to transition into a fixed rate product before rates are officially increased. The increase is expected to be in the amount of 0.25%, making the new base rate 0.5%.

Although the increase is considered minor by many standards, the monthly mortgage payment for those who have chosen to remain with their current deal will be more next month. With wage growth in a constant strain to remain equal with the rate of inflation, every little bit of an increase makes a difference.

Jonathan Harris, of mortgage broker Anderson Harris, commented on the possible increase taking place this week, saying: “Cheap mortgage rates have helped focus borrowers’ minds, particularly as there have been strong hints that interest rates may rise this week.

“Mortgage rates have already started edging up on the back of higher funding costs but lenders are still competitive and keen to lend so it is not too late for those looking for a cheap fixed rate.”