The Bank of England Monetary Policy Committee convened last week to further discuss the possibility of raising the base rate to a higher level than the current 0.5%. This rate has been held at this level for years and many close to the UK housing market see the trend continuing for some time. Last month the MPC voted 8-1 in favor of maintaining the rate, whilst last week the vote changed to 9-0.

Ian McCafferty was the solo vote in favor of raising the rate last month, but last week he followed his colleagues. He voted with the majority making the vote 9-0 to maintain the current rate. McCafferty noted how the inflation rate had not taken hold like several had predicted. He also referenced how the oil price had fallen to further affect the short term economy in the UK.

The MPC meets on the first Thursday of each month to determine the fate of the base rate. The base rate is directly tied to the rise and fall of interest rates, which makes the monthly meeting quite an important time.

The rate is now expected to stay at this level for some time after the announcement last summer which had many house owners concerned. The announcement by the Chancellor was clear to the point and had many expecting to see a base rate increase by the beginning of 2016.

Remortgages hinge on the status of the base rate and related interest rates. UK house owners are currently taking advantage of many attractive deals offered by major lenders. Remortgage activity is in high gear and is expected to remain there for several months.