The monthly meeting of the Bank of England’s Monetary Policy Committee (MPC) will occur this week bringing together the policy makers that will determine the rise, fall, or steady stance of the standard base interest rate.  The expected outcome is that the interest rate will be left at the 0.5 per cent interest rate despite rising inflation.  Committee members have viewed the economy too weak to support an increase in borrowing costs.

Homeowners looking to get a remortgage will be glad to hear that the MPC is not expected to raise the interest rate not only this month but the next as well.  That will mean the year will close out without a change to the interest rate by the Bank.  This does not however mean that there will be a steady supply of low rate remortgage deals from lenders.  The competitive market that evolved with lenders hoping to gain business from homeowners may disappear as lenders become more cautious due to threats of a double dip recession.

Currently there are very attractive remortgage deals being offered by lenders.  There are some lenders that have showed signs of becoming more cautious and pulling their very best remortgages but most are keeping their competitive mode intact and are still looking for homeowners wanting a low rate remortgage deal.  Homeowners that have not remortgaged yet will find they have plenty of deals to choose from and that fixed rates and trackers have narrowed closer together in the offerings.  Ending the year with a low rate remortgage is a great possibility for any homeowner with the equity to make a deal.