Last week the Bank of England’s Monetary Policy Committee voted to maintain the current base rate level of 0.5%. The vote was 8-1 to leave the rate unchanged which was a repeat of the month prior. The result of the meeting was not a surprise to most, but at the same time begs the question, where is the economy headed next and how will it impact the UK housing market.

The base rate was left unchanged and this is in stark contrast to what is expected in the US on Wednesday of this week. Many believe the country across the pond will be hiking interest rates for the first time in a decade. This bullish approach is expected to affect housing, but only time will tell.

Chief economist with Markit, Chris Williamson, commented on the US hike in interest rates, saying: "The ongoing reluctance to tighten policy contrasts with the more hawkish stance of US policymakers.”

Williamson added: "Policymakers in the US... faced with an economy growing at a similar rate to the UK, as well as a similar level of unemployment and inflation and even lower wage growth, are sending a clear message that now's the time to start the process of normalising policy."

As the MPC keeps tabs on the impact of a rate hike in the US the remortgage market remains in high gear. House owners across the country are now moving to obtain a remortgage before the air gets clear about timing of a rate hike. A remortgage makes it possible to cut the cost of a monthly mortgage payment, whilst securing valuable funds stored as home equity. These funds are being used to finance a much-needed holiday, a house renovation, or to pay off old debt.