It is the pressure of rising inflation that could finally force the hand of the rate regulators to hike the interest rate. The threat of an increase is exactly why homeowners have been going in greater numbers to lenders to secure a fixed rate remortgage. That trend is not expected to change in the next months.

As inflation increased to 4.4 per cent last month more pressure was pushed upon the Bank of England’s Monetary Policy Committee (MPC) to raise the interest rate. The 4.4 per cent level of inflation is more than double the goal of 2.0 per cent. Despite the pressure, the MPC left the rate unchanged at 0.5 per cent.

The MPC has some members that believe a rate change would be harmful to the economy. The tax increase and public spending cuts are suppose to have an impact on the inflation rate and changing the rate too soon would be a set back. In addition there are many homeowners that would be unable to keep their mortgage payments up should there be an increase in the rate, even if it were a small increase.

On the other side of the coin are those MPC members that believe an increase is past due. That without a slight increase now there will be the need for a much larger one later one. It could also be necessary for there to be several increases in a row some believe.

That threat of an interest rate hike is enough to get homeowners out and about looking for remortgage deals. Currently there are so many new deals coming onto the market everyday that contacting a remortgage broker would be a good idea to determine what remortgage would best serve a homeowner’s needs. There are a few weeks left until the April MPC meeting and it is anyone’s guess what will occur and for those not willing to take the risk a remortgage could give them peace of mind.