Homeowners are closely watching the movement of the base rate. Since inflation was reported for December at a higher than expected 3.4%, the Bank of England is facing crunch time. Do they change the base rate in February and face heavy scrutiny, or do they stick to their guns and stay at 0.5%? This creates more drama for the UK homeowner. Do they stay with a variable rate mortgage, or seek an attractive fixed deal?

For homeowners with a variable rate mortgage loan, the clock is ticking to make a decision. Many experts believe the 0.5% base rate is as low as it will be for some time. From this point forward many homeowners, or near future home buyers, are seeking a fixed rate mortgage loan.

Howard Archer, IHS Global Insight, commented on the base rate, saying: "There is a growing likelihood that interest rates will rise before mid-year."

Many lenders have already increased their fixed rate mortgage loans to reflect the upcoming rise in base rate. For those homeowners who have at least 20% equity built into their home, there are good deals still left. Better deals even exist for a higher percentage of equity.

Aaron Strutt, a Trinity Financial broker, commented on what is available in the fixed rate mortgage loan line, saying: "Many lenders have increased two and five-year fixes in the past week. I think the market has bottomed out and fixed rates certainly won't get any cheaper."

For homeowners concerned that falling house prices will chip away at their home equity, remortgage deals are on the hot plate. Since lenders offer the most attractive loan products to those who have the most to deposit, time is passing by for those on a tight budget. For those with a substantial deposit, good fixed deals are just waiting to be purchased - but not for long.