Homeowners had been told in the first quarter of the year to be alert and remortgage to avoid paying more for their mortgage repayment than needed. In the event of an interest rate hike it could have meant thousands of pounds over the life of a mortgage and hundreds of pounds monthly lost for many homeowners. To escape paying more and not risking financial strain or a financial downfall, experts suggested that homeowners remortgage and grab a low interest rate to protect their household budget.

Yet, things changed in the economy. Things changed in the global market. The Bank of England’s Monetary Policy Committee (MPC) didn’t increase the standard base interest rate. The forecast was pushed back for later in the summer or early autumn.

Those homeowners that remortgaged are likely breathing a slow exhale that despite the lack of increased rates, they can rest easy against the sudden warning that has again arisen that the rate could be increased. Those that did nothing could be caught off guard because again the warning is growing that a rate hike is looming.

There are still those saying the MPC will hold steady, but there are still others that believe there will be a majority vote to increase the rate this week. The MPC will meet and vote on Thursday, and not long after a vote to increase the lenders will react and many of the attractive deals available now will be gone.

If the rate increases it will likely be a 0.25% increase to push the standard base rate to 0.75%. That level will be three times the level of 0.25% the rate sat at this time last year.

Homeowners are encouraged to watch the result of Thursday’s MPC meeting. If a rate hike doesn’t occur it offers more time to secure a remortgage, and if it is hiked then it might be imperative for homeowners to consider how an increase will impact them. There will still be helpful remortgages offered and for some remortgaging sooner than later will make all the difference.