The Bank of England’s Monetary Policy Committee (MPC) will be meeting again this Thursday to determine what must occur with the standard base interest rate to assist the economy through the continued stresses of the global pandemic. There had been talk of the need for negative interest rates. However, most experts agree that the time for such a move is not necessary. Instead, it is expected that the rates will remain at their current historic low which was set in March.

During the end of the first quarter of the year, in March, the MPC met not once, but twice. Through those meetings the rate was lowered to 0.1%. The move was the boost needed for personal borrowers and business borrowers to be able to navigate the unchartered territory of the pandemic which forced a lockdown. Now another lockdown is upon us.

However, the lockdown is not expected to push the MPC to make changes in November or December. The Bank’s rate is expected to remain steady.

The lack of action on the part of the MPC will not mean that lenders will be allowing their low interest rates to sit idle. 

For many weeks now, lenders have been pulling their lowest offers from the market. Demand grew strong from home buyers for mortgage lending. The demand for remortgage lending, while not at the level expected, is forecasted to increase as the repayment holiday ends for many homeowners. Some lenders in response to the strong demand for mortgages and remortgages have pulled their lowest interest rate deals and many have tightened the borrowing criteria.

For those expecting the MPC meeting to lead to lower interest rates and better deals on mortgages or remortgages, the outcome will likely be disappointing. The good news is that attractive deals with low interest rates are already available today, especially for home buyers and homeowners. 

Borrowers are encouraged to shop online for deals as most lender and broker websites have been updated to better serve borrowers during the pandemic. It is possible to get great advice and information as well as quotes in which to make an informed decision on which mortgage or remortgage offers the best savings. Then taking action as soon as possible to begin the process will help make sure the benefit of the current low interest rates are secured.