Queens Passing Postpones Bank of England MPC Meeting Until Next Week

Queens Passing Postpones Bank of England MPC Meeting Until Next Week

Before the passing of The Queen, the Bank of England’s Monetary Policy Committee (MPC) had been scheduled to meet this week on the 15th. The meeting would have likely resulted in an increase in the standard base interest rate. As would be expected, the meeting has been postponed until the 22nd due to the mourning period. Much will be postponed as the Nation adjusts to the shocking news of loss of The Queen. The distraction will likely impact even the smallest of concerns, including business processes, and the activity of borrowers and home buyers.

This could skew the data for September as far as the housing market, lending, and more will be concerned. It is understood, and none will likely attempt to fully interpret the data without reflection of The Queen’s passing and will instead look toward the weeks ahead for true financial interpretations.

There was some good news globally in regard to the Ukraine-Russia war. Progress has been made by the Ukrainian troops as retreat by Russian troops was reported. The war has contributed to much of the financial distress felt globally in energy costs. 

Meanwhile, the warnings continue for homeowners to consider the benefits of a remortgage as autumn sets in and summer leaves. It will mean only a few months before colder temperatures begin to set in and energy costs take a hit on already strained household budgets. 

With a remortgage, especially a fixed rate remortgage, homeowners could secure an interest rate that will be fixed and would therefore protect against any further rate hikes by the MPC. A remortgage could offer escape from paying more than necessary.

Those that have had their mortgage term end and have yet to remortgage will have been moved to their lender’s standard variable rate (SVR). It has been reported that an SVR could be at a rate level double that found with a remortgage. A lower rate is definitely desired by all borrowers as it is in simple terms the cost of borrowing. The lower the interest rate, the less paid. It is why an SVR is less desired than a remortgage by the majority of homeowners and certainly when rates are rising.

The MPC has increased the base rate of the Bank from the historic low of 0.1% in December to 1.75% in August. The rate has had an increase at each of the last six consecutive meetings. Last month’s meeting resulted in the largest increase of this year at 0.50%. The meeting this month could result in the same increase and take the rate to 2.25%.

With inflation still in a pattern of growth and not yet expected to steady until next year, more Bank rate increases could come and therefore more expense for those holding high value loans such as homeowners and home buyers.

There are of course, more things set immediately into priority of our lives this week than preparing for the financial future. However, it should be noted that it takes only minutes to secure remortgage quotes online with remortgage lenders or many quotes from various lenders shopping at a remortgage broker website. It is an easy and quick process and puts information into hand that could offer hope and relief from the expected financial strains in the month ahead. 

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