Summer is well underway and yet there has still not been a standard base interest rate cut by the Bank of England’s Monetary Policy Committee (MPC). Forecasts were once calling for a cut early in the year, then it moved to late spring, now it is thought to be either the end of summer on 1 August or in early autumn in September. However, lenders are not waiting on the MPC, but are instead cutting their own lending rates. As the 2024 Summer Olympics take place in Paris and we are all glued to the coverage, it is important to take a few minutes to shop for a remortgage and achieve our own Olympic sized opportunities to save money.

Homeowners are likely to find substantial savings if they shop for a remortgage now. Waiting on the decision of the Bank of England’s Monetary Policy Committee (MPC) to cut the standard base interest rate is not necessary to find lower interest rates. Lenders have been confident that a rate cut is nearing and have lowered their interest rate offers over the last few weeks. Recently, Nationwide lowered rates below 4% on mortgages while the Bank’s base rate remains at 5.25%. Remortgage rates are not as low but are nearing the same threshold.

Homeowners most likely lack interest in the housing market once they complete their sale. However, how the market is fairing and what is happening in their surrounding area is important. If the value of properties is rising or declining has an impact on their financial opportunities and not just if and when they are willing to sell. This is especially true for when homeowners remortgage and millions will be doing so over the next twelve months.

The outlook for the 2024 UK housing market is optimistic. Recent data says so, but even without it, experts are encouraged for the changes set to occur in the last half of the year. Inflation reached the target of 2.0% in May, and reported this week it remained so in June. Lenders encouraged by a sooner rather than later cut to the standard base interest rate by the Bank of England’s Monetary Policy Committee (MPC) have already begun to cut their own interest rate offers. Home buyers are showing up online to shop for properties, hopeful home movers encouraged by the demand from buyers and their own ability to purchase are listing their properties, and first-time home buyers are hopeful new schemes and lower interest rates will allow them to climb onto the property ladder.

It would not be surprising to ask a homeowner or a home buyer that has put off getting a remortgage or mortgaging for a property as to why and discover they are waiting on the Bank of England’s Monetary Policy Committee (MPC) to make the first rate cut since March 2020. Finally, the inflation rate reached the Bank’s set target of 2% last month, which was the report released in June concerning the state of inflation in May. With inflation at target, it would be expected the MPC would be nearing a decision to cut the standard base interest rate of 5.25%. Borrowers did not need to wait, for lenders were so optimistic a rate cut was nearing they began offering interest rate offers as if the MPC had already met, voted, and cut the base rate. Lenders might have been a bit too optimistic, and home buyers and homeowners might be putting off borrowing longer, because the expectation of a rate cut next month has lessened.

For homeowners, there might be confusion as to why there is so much talk about remortgaging. The confusion could be due to misunderstandings about what a remortgage is and what it can do. During specific economic situations, a remortgage could save a homeowner money when there are lower interest rates to be found. When the homeowner is coming to the expiration of their current mortgage term, a remortgage could offer the ability to secure a lower interest rate, a longer term, or even a fixed rate to lock in a rate and offer peace of mind.