During the last meeting of the Monetary Policy Committee, a vote was held as it is held each month regarding a hike in the base rate. The outcome was 7-2 in favor to leave the base rate where it now resides, 0.5%. Although many in and around the UK housing market are expecting interest rates to increase at the beginning of next month, there is now a chance the base rate will remain at 0.5%. This is good news for those looking to purchase a home in the coming weeks, but unfortunate news for those looking to benefit with a better savings rate.

The inflation rate has fallen from the 3.0% level it has been for months. The current rate of inflation sits at 2.7%. This new rate now puts into question what the Bank of England will decide to do during the next MPC meeting. The next meeting will take place in the early part of May and many will be watching and listening for what the meeting will produce. Some feel the lower inflation rate puts a potential increase in limbo.

For those considering remortgage, this is a trying time. For months, housing experts have been urging home owners to take some time and remortgage before rates go up. They have been suggesting to all those who are remortgaging to consider a fixed rate deal which will provide some insurance against rising rates in the future. A fixed rate prevents a monthly mortgage payment to increase during a rate rise.

The coming weeks are potentially critical to the actual vote which takes place next month during the MPC meeting. A lower inflation rate decreases the possibility of a rate increase. Home owners are being urged at this time to look at their current deal and its maturity date. This could still be the best time to remortgage.