The Bank of England’s Monetary Policy Committee (MPC) is expected to leave the interest rate set at 0.5% as they meet this week.  Economists are forecasting that the current historically low rate, which was set in place back in 2009, will not be changed until perhaps next year.  The rate has been kept low to allow borrowers the affordability of taking out a loan which would assist in nursing the economy back to strength.

New guidelines were put into place to help study and determine when the economy could withstand an increase in the standard base rate.  Previously it had been set that once the unemployment rate fell to 7% the rate would be due an increase.  However, the jobless numbers fell sooner than expected when economic growth sped up putting that decision on hold as new guidelines were put into place.

Reports have shown that while the economic state of the UK is strengthening, in March it slowed to the weakest pace in nine months.  The current inflation rate is still below the Bank of England’s target level of 2% and stands at 1.7% which should help the MPC choose to leave the 0.5% rate in place.

Homeowners seeking out a remortgage should be warned that while the MPC may leave their rate in place, it does not guarantee that lenders will be leaving their offers in place.  Demand has grown for remortgage lending and with that high demand could come an increase in swap rates for lenders.  The increase will of course be passed on to borrowers which could make the cheap remortgage deals begin to disappear.  Homeowners should be prepared to shop around and compare deals to find the best one for their mortgage needs.  In the event they expect to have a complicated remortgage seeking out a remortgage broker could be helpful.