The last meeting of the year of the Bank of England’s Monetary Policy Committee (MPC) was conducted and ended with no change to the standard base interest rate.  The rate has gone unchanged throughout 2014 and remained at its historical low level of 0.5% since March 2009.  There had been many economists that had forecasted a possible change by the end of the year during summer but weakness in the global economy slowed such an outcome.  There is still expectation that next year will see the first rate hike.

Experts have warned that mortgage holders should take precaution and prepare for several increases to the rate in 2015.  Slow and steady increases are due throughout the year as the UK economy continues to gather strength.  For homeowners not prepared, the increases could be very difficult to fit into the household budget.  The warnings have gone unheard by many homeowners as demand for remortgages has remained low.

The MPC members have parted votes on the need for an interest rate hike over the last few months.  Two members have voted for increases of 0.25% to a total of 0.75% while other members have remained committed to the current rate.  Whether the members were unanimous for the steady rate or some voted for increases will not be known for a few weeks when the minutes are released to the public.

The UK economy while slowing is expected to remain the fastest growing of developed countries globally.

Homeowners still need of preparing for rising interest rates will be pleased to know that lenders are currently in a competitive state and offering attractive cheap remortgage deals.  Shopping around now will reveal those that are helpful to a family household budget and will keep the rising interest rates at bay next year.