Remortgaging is popular among homeowners as they seek to lower risk from interest rate increases by getting a fixed rate loan. Yet analysts believe the number of homeowners that could benefit from a remortgage in comparison to those getting remortgages show that few are making a switch. This may be from some homeowners being unable to obtain approval. While others may be in denial as to the fact that an interest rate increase may well be on the horizon.

Most analysts believe the odds are in favor of a rate increase in May. This is due to the fact that data from the first quarter will be available for the Bank’s interest rate regulators. The Monetary Policy Committee will be able to view the country’s GDP and determine how much the economy has or has not grown. Depending on the strength of recovery there could be an interest rate increase. Further forecasts show there will be several interest rate hikes before 2011 is finished.

Melanie Bien, a Director of the independent mortgage broker Private Finance, stated in reference to a rate increase: "There is huge pressure on the Bank of England to raise interest rates. Inflation is well above the government's 2 per cent target, prompting several members of the Monetary Policy Committee to vote for an immediate increase in rates.

"But the majority still have to be convinced, and it may take a few more months for this to happen. We expect interest rates to remain on hold until the summer before rising slowly. There are too many risks associated with increasing interest rates sharply in the short term, while there is also a debate as to whether this would have any impact on inflation anyway."