The current interest rates have been spectacularly attractive in the last few months. Lenders are keen to grab the attention of borrowers and are offering creative and attractive mortgage and remortgage deals. For some lenders, their current lowest interest rate offering is at an historic low. Now there are whispers from experts that interest rates could be about to get even lower.

Due to the economic growth forecast by the Bank of England in response to Brexit and growing trade wars, the Bank’s Monetary Policy Committee (MPC) could choose to cut the standard base interest rate in the months ahead. During the last meeting of the MPC, two members voted to cut the rate. This was the first spit vote since June of last year. The 7 to 2 vote held the current rate at 0.75%.

According to official data, the UK economy escaped slipping into a recession with growth reported at 0.3% by the Office for National Statistics (ONS). The growth forecast had been set at 1.3%, therefore while there was growth, it was 1% down from expectations. This marks the weakest annual rate since 2010.

Due to the growth, the UK avoided slipping into a recession, which is defined as experiencing two continuous periods of economic decline. The second quarter of the year had experienced a 0.2% decline.

An ONS spokesperson remarked, “GDP grew steadily in the third quarter, mainly thanks to a strong July. Services again led the way with construction also performing well. Manufacturing failed to grow as falls in most industries were offset by car production bouncing back following April shutdowns. The underlying trade deficit narrowed, mainly due to growing exports of both goods and services.”

Because of the slowed growth of the economy, interest rates could be cut by the MPC.

The minutes of the MPC November meeting reported, “If global growth fails to stabilise or if Brexit uncertainties remain entrenched, monetary policy may need to reinforce the expected recovery in UK GDP growth and inflation.

“Further ahead, provided these risks do not materialise and the economy recovers broadly in line with the MPC’s latest projections, some modest tightening of policy, at a gradual pace and to a limited extent, may be needed to maintain inflation sustainably at the target.”

Most experts believe that there could be a 0.25% rate cut in the next year. However, waiting for that cut to the rates might not be necessary for mortgage and remortgage shoppers looking for a low interest rate. Lenders are currently competitive for borrowers and those home buyers ready to take action and buy property and those homeowners ready to lock in a fixed low interest rate remortgage are likely to find attractive deals already in place now.