Looking for a remortgage can be a calm and steady procedure for those homeowners on the hunt for a great remortgage lending deal.  Whereas there was a rush months ago due to the high level warnings that an interest rate was immanent by Spring, now the forecasts are more relaxed.  Economists call for the earliest interest rate rise in August and others push it back as late as November or in early 2012.

The Bank of England’s Monetary Policy Committee (MPC) has had both fans and critics concerning their actions of leaving the rate unchanged now for over two years at 0.5 per cent.  Inflation remains above the goal level of 2.0 per cent and some economists, including some MPC members, say the rate should rise.  Others believe that public spending cuts will have an impact on inflation and bring it downward without a rate increase.  The June meeting is hours away and economists believe that the rate will remain once again untouched making this the 27th month for the standard rate interest rate to go unchanged.

This will be welcomed news for the many homeowners that have been unable to secure a low rate through a new remortgage.  Lending has remained tight and some homeowners have seen their equity drop to levels making it difficult to remortgage due to falling house prices.  With many households on a squeezed budget, another month without an interest rate rise is important.

David Kern, chief economist at the British Chambers of Commerce (BCC), commented on the MPC, "While increased utility prices and high inflation puts the MPC in an uncomfortable situation, countering this with a rise in interest rates would be a mistake. As long as wage increases remain subdued, the MPC should hold its nerve for the time being."