In the beginning of November the Bank of England’s Monetary Policy Committee (MPC) met for their monthly gathering and ended up leaving the standard base interest rate at 0.5 per cent.  That left homeowners that were planning to remortgage happy to know that rates would likely remain cheap for their remortgage deal.  How close the MPC was to changing the interest rate or not will be revealed this week when the minutes from the November meeting are released.

The minutes from this month’s meeting will be particularly interesting to economists.  Especially after the quarterly report was submitted by the Bank’s governor, Sir Mervyn King, which revealed the level of inflation is likely to fall from the current 5.0 per cent to below goal level next year.  The goal rate set by the bank is 2.0 per cent.  By hiking the interest rate the level of inflation would be impacted and inflation would fall.  Not all though think that inflation will fall that dramatically by the first half of 2012.

Whether the MPC was close to changing the interest rate or not is not as major a concern for interest rates offered by lenders as the situation of the economic crisis in the eurozone.  The problem in the eurozone and the lack of UK economic growth is expected to cause lenders to become more cautious.  This will mean the end of the cheapest remortgage deals currently on the market and homeowners will have missed out.  Homeowners are being urged by remortgage experts that now is a good time to remortgage before offerings change and the best deals are pulled.