Many homeowners are shopping for remortgages for savings prior to the Brexit deadline. They are also looking to escape the higher rates attached to many lender’s standard variable rates (SVR). According to experts, the interest rate level attached to some SVRs could be double or more the level homeowners would have been used to paying before their mortgage deal ended. Rather than pay more on a repayment than needed, a savings could be found with a remortgage and that is why the demand is high.

There are, however, some homeowners that are taking the risk of waiting out Brexit in the hopes that current low interest rates will drop even further if the Bank of England chooses to cut the standard base rate. There is a lot of pressure on the Bank of England’s Monetary Policy Committee (MPC) to cut rates as the UK economy deals with the pressure building from Brexit. It would be the first cut to the rates in close to seven years should it occur.

In the last meeting of the MPC, they chose to keep the standard base rate at the current level of 0.75%. The vote to keep the rate steady was unanimous among the members. Usually when the rate is nearing a cut there will be a divide between the members and the majority will rule a steady stance for the rate. The divide reveals that some members are looking to a move for a rate cut or increase, but with the latest meeting being a unanimous vote it could mean that there are more meetings to come before a change occurs.

As the talk of a no-deal Brexit grows, there could be a need to cut the rate according to experts. Such a cut would likely occur not long after the deadline passed. As the economy adjusts and the smoke settles, rate increases are expected to quickly be needed. Therefore, should rates decline, it is expected that borrowers would need to act relatively fast to take advantage of any savings before they disappear.

Whether that occurs or not is yet to be seen. However, there are currently very attractive interest rates being offered by lenders as the market becomes more competitive leading up to Brexit. Perhaps the savings to be found now is enough to take action to remortgage rather than wait and miss out on what could or could not occur with a cut to the rate.