UK housing market lending is at the mercy of the standard base rate and ultimately what happens with inflation. Last November, the inflation rate stood at 3%. This is a level which is higher than the target rate of 2% set by the Bank of England. The Central Bank is charged with holding inflation at the 2% rate which is now again sitting 30% higher than the target rate. There are whispers of a possible rate hike coming in the coming weeks.

The short term future of mortgage lending in the UK housing market is coming into question now and what will take place is unforeseen. Some experts feel there is now a likelihood of a rate hike coming sooner compared with later. This is unsettling to many who are thinking about obtaining a remortgage.

Many house owners remain on the fence about obtaining a remortgage. Along with the unpredictable outcome of Brexit negotiations, consumer finances continue to be squeezed through an elevated inflation rate. Many households are finding themselves simply trying to find ways to stretch pounds until the end of each month due to challenging economic conditions. Inflation can make affording life necessities difficult. Combine this with little wage growth and a household can begin struggling quickly.

Now is the time to consider a remortgage and begin saving money each month. According to housing experts, interest rates are sitting at low, affordable levels making it quite easy to find a well matched remortgage package. There could be an interest rate hike looming around the next corner and a fixed mortgaged would be the best defense.