The change in base rate is on the clock. Many homeowners are aware of that fact and trying to make some difficult decisions. Do I stay with my current loan product, or wait it out and risk savings in monthly mortgage cost? The question is presenting itself to every homeowner in the UK.

Recent figures indicate people are thinking a hike in the base rate will occur sooner as opposed to later. Remortgages are on the rise and are showing few signs of slowing down.

The Monetary Policy Committee (MPC), responsible for changing the rate, will be almost obligated to do something soon, as inflation is quickly rising. It now stands at 1.3% above the Bank of England’s targeted rate of 2%.

David Hollingsworth, from London and Country, recently discussed the possible thoughts occupying homeowners’ minds, saying: "Borrowers are starting to feel that there are savings to be made by remortgaging, and that this will help to protect them against rising rates."

Melanie Bien, formerly of Private Finance, recently commented on the importance of making the right decision for your personal situation, saying: "Nobody knows for sure when interest rates will rise, but we do know that they will increase eventually. There is no room for complacency - all you can do is look at your circumstances and take the right course of action for you."

There are several different opinions of thought available to research. Two significant financial bodies have released their own statements about what the near future possibly holds.

The CEBR, or Center for Economics and Business Research, believes 0.5 will remain the going base rate until late into 2012.

A completely different opinion is being expressed by the Confederation of British industry (CBI). They believe inflation, along with other factors, will force the Bank of England to raise the rate within the next few months. They estimate the rate will be raised to at least 1.25% by the end of this year. Then, they believe 2.75% will be reached by the end of next year.

Bien suggests looking at your own mortgage situation and outgoings and say, if rates rise will I struggle to pay my mortgage? The answer to this question will help in making a better decision.

Although rates are an important part of negotiating an attractive mortgage deal, the amount of deposit is a factor as well. The cardinal rule is, the more you are able to put down, the better chance you have of getting the rate you need. Many brokers are concerned, because lenders are currently saving the best rates for those with at least 40% deposit.

Other considerations when remortgaging are the length of the deal and arrangement fees. Every lender will have something slightly different to offer.