The Bank of England increased the standard base rate last month in a move by the Monetary Policy Committee which was well known and hinted on for weeks prior to the official meeting and vote. This created a mass wave of remortgage activity during the month prior to last month. Home owners were offered low interest fixed rate remortgage deals which they eagerly took advantage of. This resulted in many property owners immediately saving money and sidestepping an increase which would have raised their monthly mortgage payment. Now, talk from the Bank of England is hinting at another increase revolving around Brexit.

The Bank of England’s Mark Carney recently spoke publicly about how a no deal Brexit could result in inflation chaos and the possibility of an increase in the standard base rate in order to maintain control. The current base rate now sits at 0.75% which is as high as it was before days of the economic crisis which took place in the year 2009. Many are already expecting a rate rise before the end of the year.

Another rate rise will push further the repayment amounts of mortgage borrowers who are sitting on a tracker or standard variable rate mortgage. This will add more financial pressure and stress to those who have not remortgaged to date.

The additional rate rises are not for certain, but Carney commented on the possibility of this taking place.

Carney said: “The appropriate [monetary] policy response is not automatic and will depend on the balance of the effects on demand, supply and the exchange rate”.