The Budget is expected to spike inflation. How long inflation will stay at an increased level is the concern of many. Some analysts believe it will require a rate increase within the next three to four months.

Because the rates are expected to increase, those in the remortgage business expect to see an increase in borrowers seeking to secure a rate during that first raise. The number of homeowners that are seeking a remortgage has dropped. The rate increase is expected to jump those that have waited for remortgage into action. There has been a "wait and see" attitude from homeowners who have not yet obtained remortgage. The rate spike is expected to increase remortgage activity in the fear there will be a need for more rate increases.

A poll by Legal and General questioned mortgage advisors and only a third expect business will be better in the third quarter. Out of 122 of the advisors 65 per cent said business would be the same or worse than in the previous quarter.

Stephen Smith, Legal and General’s Director of Housing stated: "Some commentators have been flagging the inevitability of increases in the base rate for some time and the recent published inflation figures bring this sharply into focus."

It is expected that those who have not attempted to remortgage and those that tried but were denied will be seeking advice from remortgage experts once the rates are reported to inevitably rise or actually change. It will be the rise in rates that will push those that have not remortgaged and can to act and those that were denied in the past will be seeking out relief in the hopes of a solution. Smith noted: "The Bank of England believes that the recent rise in inflation is a temporary spike but it must be said that there is now more lingering doubt around how quickly inflation will drop."

Remortgage seekers will either act now or once the rates do rise. So a slight increase in business will be expected there. More business will increase from those have been denied remortgage and are looking to brokers to come up with alternatives and new options for them.