MPC Leaves Base Interest Rate Unchanged another Month
The Bank of England’s Monetary Policy Committee (MPC) has voted to leave the standard base interest rate unchanged for another month. The MPC held their monthly meeting and the 9 member committee voted to leave the interest rate unchanged at 0.5 per cent for another month. This will be good news for those homeowners who have been considering a remortgage.
Remortgage rates remain at very low interest rate levels. In some cases fixed rates have narrowed extremely close to the offerings in tracker remortgages. Fixed rate remortgages have continued to be popular as the economy remains weak and economists remark that once growth occurs there should be expectations of several interest rate hikes. It has long been voiced that the more time that expires without an interest rate hike the more hikes and greater movement upward we can expect once they do occur.
Studies have shown there are a large number of homeowners that can remortgage but they are holding out and waiting. They prefer the interest rate level of their lender’s variable rate despite the ability to secure an interest rate at a level very close to what they are paying now. The risk in waiting is that lenders could change their rate at any time and that the best remortgage deals could be pulled in the shadow of the rising economic problems in the eurozone. Homeowners that can remortgage should seriously choose to do so while the MPC has left the standard base interest rate unchanged and lenders have great deals to offer.