Interest rates have a significant affect in regard to mortgage lending. Those who are in search of an initial mortgage loan or a home remortgage are paying special close attention to the economy in general and inflation. The latest inflation figure to surface indicates inflation is sitting at 2.1%. This is only slightly higher than the target rate of 2%. Many housing experts have commented the Bank of England will not have to raise interest rates during the February meeting of the Monetary Policy Committee.

Although anything is possible, at appears the next meeting of the Monetary Policy Committee within the Bank of England will not produce an increase in the country’s standard base rate. The current rate of 0.75% is still historically low and many purchasing property and remortgaging are saving massive amounts of money in interest charges.

First time buyers are sitting in an especially favourable situation. Income growth is taking place and more properties are being placed on the market for sale. With the cost of lending remaining low, those who are purchasing property for personal use or buy to let are finding deals which feature affordable interest rates. They are also finding deals featuring incentives and sometimes cash back.

Inflation plays a major role in the possibility of rates increasing, but as of right now there is little reason to believe there will be increases coming in the near future, according to housing experts.

Remortgage is especially active currently as house owners are discovering deals which offer immediate savings and the possibility of a home equity cash release.