As expected the Bank of England’s Monetary Policy Committee (MPC) met on Thursday, 17 March, and increased the standard base interest rate. For the third meeting in a row, the rate was hiked and to 0.75%. Considering before the first rate increase occurred in December the standard base interest rate of the Bank was at an all-time, over 300 plus year historic low of almost zero at 0.1% and it is now over seven times that rate, homeowners are encouraged to take notice and prepare for even higher rates and perhaps tightened lending.

There are many factors that will be putting a strain on household budgets in the months to come. Rising prices can be seen almost everywhere. Luckily, as energy costs are rising, spring weather is on the horizon and fewer homes will be dependent on heating. However, fuel and food costs are rising rapidly. Commuters will likely be seeking out ways to save money and ditch automobiles for public transportation when possible. This could be even more troublesome should another variant of Covid-19 take hold of the public, which is currently a whispered concern.

Rising costs, a pandemic still holding a grasp on the global population, and the war in Ukraine are all concerns impacting the UK economy. Inflation is not only rapidly rising, but due to the previous mentioned factors, will likely push it to a level not seen in 40 years. Experts warn that their forecast of an inflation rate in spring of 7.25% will likely be surpassed and it could run into double digits in the summer if not sooner.

Homeowners could prepare for rising costs and seek to save money. Shopping for a lower interest rate through remortgaging could offer relief. Choosing a fixed rate remortgage could lock in the lower interest rate for years to come and offer savings against rising rates. 

Past studies have shown that in times of economic stresses, which were experienced when the pandemic caused shut-downs, remortgages not only offered financial relief, but personal stress relief as well. This is why remortgaging demand is expected to grow in the weeks and months to come.

Increased demand and the state of the economy with rapidly rising inflation could cause a tightening in lending. Therefore, not only is it suggested to homeowners to shop sooner rather than later for a remortgage to save money, but do so while lenders are still in a competitive mode for the attention of borrowers.

An easy and quick few minutes online is a great way to start shopping for a remortgage. It is simple to go website to website of remortgage lenders to gain quotes in which to compare offers. Homeowners could also visit a remortgage broker and get many quotes from various lenders at one stop. By comparing quotes and narrowing down the best deals available to the homeowner, the motivation to save money and secure a long term fixed low rate against rising interest rates will set the homeowner to succeed at finding relief and peace of mind for the coming struggles forecasted for the UK economy in the months and perhaps years to come.