Homeowners should be sitting up and taking notice of the fact that interest rates will be rising.  Likely sooner than later according to many economists and hints from rate regulators.  What once was scheduled for late 2015 has been moved earlier and earlier over the last year to the point that with in only the past few months, the forecast has changed from early 2015 to late 2014.  Such warnings are likely to further escalate the demand for remortgages.

According to the Bank of England’s Monetary Policy Committee’s (MPC) June meeting minutes, all nine members voted unanimously to leave the current standard base interest rate at 0.5% but gave hint to the fact that the growing economy and rising house prices could require a boost to the cost of borrowing.  The MPC has kept the current rate set at the historically low level since March of 2009.

The minutes read: “There was a risk that growth would not slow in the second half of the year so that, without a corresponding rise in supply, slack would be absorbed more quickly than had previously been expected. In that context, the relatively low probability attached to a Bank rate increase this year implied by some financial market prices was somewhat surprising.”

Mark Carney, the Bank governor, remarked last week in his speech that a change to the interest rate could happen “sooner than markets currently expect”.

Howard Archer, chief UK economist at IHS Global Insight, remarked in response to the MPC likely raising the interest rate, saying, “The minutes of the June MPC meeting do little to dilute substantially increased expectations that the Bank of England will lift interest rates from 0.50% to 0.75% before the end of 2014."

Remortgage deals are currently very attractive and lenders are offering low interest fixed rates that could likely save homeowners money in the years ahead.