The possibility of rates getting a hike in the month of May is growing. The standard base rate currently sits at 0.5% which is an historically low level. Bank of England has been hinting at the increase for months and many housing specialists see next month as potentially when the Monetary Policy Committee will vote one in. An uptick in the amount of remortgage activity has been evident for months, dating back to the middle of 2015. House owners are now preparing for another possible increase by securing fixed rate remortgages and setting themselves up for years of insurance from further increases.

According to UK housing market data, mortgage lending has been steadily increasing over the last few years. This includes an increasing number of house owners who have chosen to remortgage their properties instead of moving home. These owners are choosing to take advantage of lower interest rates and take advantage of the benefits offered through the emerging type of mortgage lending.

Housing specialists are expecting even more house owners to remortgage in the coming months, especially through the months of this year. A lower interest rate means house owners are able to save money by paying a lower monthly house mortgage payment. Interest rates are expected to move only slightly this May, possibly only 0.25%. This will result in small, incremental change to the amounts of monthly mortgage payments across the country which are not fixed mortgage loans.

Inflation has fallen slightly in the last few months which has placed a hanging question mark over the potential of a rate hike. Inflation is the number one reason for a hike in interest rates and some believe the hike will be held off until a later date. Others feel rates will increase in the next couple weeks.