Homeowners looking to remortgage before a rate hike may be smart to take into account rising inflation. It is the increase in inflation that may push the hand of regulators to move the now two year rate of 0.5 per cent upward. How much of an increase there will be to the rate is unknown. Andrew Sentance, one of the Bank’s rate regulators, has been seeking an increase for many months and has voiced that an increase is long overdue. He believes that if the rate does not get a small hike soon then it will require a much larger one.

The Bank of England’s Monetary Policy Committee (MPC) has their next meeting on April 7. Inflation will once again be the major concern. February’s inflation forecast of 4.2 per cent was over run by coming in at 4.4 per cent. March is expected to be even higher. According to the Office for National Statistics, February is the highest inflation level seen since 2008.

While the consumer price index, which is used to measure inflation, was at 4.4 per cent in February it does not include housing inflation. The retail price index (RPI) includes mortgage interest payments and is now at 5.5 per cent. This is an increase above the 5.1 per cent rate recorded in January.

David Newnes, Estate Agency Managing Director of LSL Property Services, believes that inflation is becoming potentially dangerous and the MPC needs to take action soon. He stated: "When it gets as high as this, low mortgage rates begin to be offset by the reductions in spending power that inflation brings.

"Wages aren’t keeping up with prices, but consistently high inflation does improve the bargaining position of employees when they are asking for a pay rise.

"Across the economy, this means that unless the Bank takes action soon, we could be saddled with high inflation."