The warnings have been there, and perhaps some have pushed them away as nonsense, because after all we have had warnings before that the Bank of England’s Monetary Policy Committee (MPC) might increase the standard base interest rate. Each past warning since the financial crisis has come and gone without an increase, but this time the warnings have greater odds to come true, and as soon as Thursday. If the rate is increased as expected, it would rise from 0.25% to 0.50%.

While that is a modest increase from an already very low rate, in fact, a historical level rate, it could still cause many homeowners to experience financial problems. Experts are quick to remind that this is not likely the last increase to be seen as more could be expected with each one in low increments, but rising slowly toward a more normal rate for borrowing.

Homeowners that have had their mortgage deal end and have been moved to the lender’s standard variable rate (SVR) will be quick to see a change should the MPC decide in their November meeting to increase the rate. Of course, those with variable rate mortgages will as well. According to one report, Nationwide has confirmed that they will be passing on the increase across the board to all of their more than 600,000 variable rate home loan customers.

There are an estimated 5 million UK homeowners on variable rate mortgage deals. These will see increases and it could prompt a rush to remortgage for those seeking to get a fixed rate with a low interest rate. There are still attractive remortgage deals available, but they won’t be staying at their low level currently available. Lenders will pass on the increase cost of borrowing to customers and replace their lowest deals with ones that reflect an increase.

Yet, with possibly more increases to come, a remortgage is still a consideration for those looking to escape the added cost to their repayment budget, and some lenders may hold out on replacing their remortgage deals to bring in those eager to push aside loyalty and switch for the sake of their financial health.

Some lenders might absorb this first increase by the bank for a while hoping to hold on to customers. For those homeowners on variable rates that escape the immediate impact of an increase, it will be an opportunity to take the time available to them to shop around for what is available rather than face paying more than needed as interest rates rise.