The Bank of England’s Monetary Policy Committee (MPC) will once more come together and make a decision as to whether the current UK economy is healthy enough for, and more importantly in need of, a hike in the current standard base interest rate.  The rate has gone unchanged since March 2009 and resides at the historically low level of 0.5%.  Last month’s MPC minutes released a few short weeks ago revealed that two of the nine members did vote for an increase of 0.25% to bring the rate to 0.75%.

There has been much discussion amoung economists and business experts as to when the rate might increase and there is speculation that all things staying the same with the current economic growth that either by the end of this year or the beginning of next year, the MPC will emerge from their monthly meeting with a majority vote for the interest rate level to rise.  It has been assured that when the rate does increase it will do so slowly and steadily to allow the economy and consumers to adjust to the change.

Mortgage and remortgage borrowers are expected to show a strong demand for low interest rate deals when the warnings become more intense from economists as to an impending change.  The forecasts were right on target with the expectation of the August meeting of the MPC breaking the long standing unanimous vote for the interest rate to stay steady.  Therefore, the expectation of a soon to be increase should make hopeful borrowers go on alert.

Those expecting to apply for a mortgage or remortgage loan should stay aware as to the rates being offered by lenders.  Many lenders will not wait for the Bank’s rate setters but will pull their lowest rates and start revealing costlier loans than their current cheap remortgage and mortgage offers.