As expected, the mortgage lending market had a boost prior to the official start of summer. Good weather helps to bring hopeful home buyers to the housing market. Also, home owners tend to seek out remortgages when the summer comes around. Several reports have revealed that remortgages increased both month to month and year to year along with an increase in first time home buyers in the lending market.

Home buyers, as well as homeowners, are taking advantage of the continued low interest rates lenders are offering. For those seeking out fixed deals it could mean a safety net against rising rates, which according to forecasts could possibly occur this year.

The Bank of England’s Monetary Policy Committee (MCP) had been expected to hike the standard base interest rate early in the year. However, it was pushed back and that kept home buyers and home owners from facing higher rates. If the rate had been increased by the expected 0.25% it would have moved the rate from 0.50% to 0.75% and while it can appear to be a minimal increase, it could amount to thousands of pounds for some borrowers over the life term of the deal.

At 0.75% the standard base rate would have been three times the amount of the rate in the first three quarters of last year of 0.25%. Such a realization is expected to keep borrowers interested in the current low interest rates offered before an increase does occur. Along with the attractive offerings and the usual summer boost to the housing market and lending market, demand is likely to remain strong and even stronger should warnings appear of an intended increase by the MPC.