Homeowners that are considering a remortgage are sure to be keeping a watch on the interest rates. The opportunity to secure a deal before interest rates increase could be considered a smart financial move. There won’t be a scheduled meeting of the Bank of England’s Monetary Policy Committee (MPC) until next month on 2 May unless an emergency meeting would bring together the members to vote on the standard base interest rate.

Currently the rate set by the MPC is at 0.75%. Last year there were two increases with the last coming in August 2018. Each increase was 0.25%. This pushed the rate up by the end of the year to three times what it was at the start of the year. While the increases were considered small, many homeowners experienced enough of an increase in their repayments to make it a hardship on their family budget.

The MPC voted in their last meeting to hold the rate steady. Consideration of changes to the rate occur in trying to keep inflation within the 1% range on either side of the Bank’s target rate of inflation of 2% so as to sustain economic growth and employment. The last report on inflation was in February and was reported at 1.9%.

The next report on the UK inflation rate will come on the same day as the MPC meets in May.

Brexit is and will continue to impact the MPC and the standard base interest rate.

As Brexit draws closer and a clear resolution is put into place it is thought the economy will stabilize. Uncertainty will dissipate and consumers will be keen to move forward toward the future.

There are some that expect the first interest rate hike to occur as soon as summer, with the possibility of four hikes to have occurred by the end of next year.

Given the current state in the lending market with competitive lenders, low interest rates, and an ease in lending homeowners are expected to take advantage and remortgage sooner rather than later.