This upcoming week will see the Bank of England’s Monetary Policy Committee meeting for their monthly gathering to discuss the UK economy.  The result of the meeting is not expected to bring any surprises especially for borrowers.  Borrowers are pretty much set to see the MPC leave the standard base interest rate at its 0.5 per cent level.  No change by the MPC though does not mean that homeowners will see remortgage interest rates remain low.  Lenders could leave or pull their best deals.

Borrowers in the remortgage and mortgage area have been benefitting financially from low, low lending offers from lenders.  The lack of any warnings that the MPC will be raising the interest rate has left demand for mortgage lending sluggish.  Lenders decided to offer more competitive offers and the result paid off as demand for remortgages stayed steady though below the normal levels seen in a healthy market.

The low interest rates on remortgages should remain throughout the month as threats of a double dip recession will not likely accompany a move by the MPC this month to raise the interest rate.  The December meeting of the MPC will be a mirror image of the November meeting with the Bank’s interest rate remaining steady according to experts.  No major surprises are expected from the November meeting of the MPC.  What will be of most interest is the release of the meeting’s minutes a few weeks later.  The mood of the meeting will give economists an insight into the major concerns and expectations of the MPC and what could be on the horizon as a new year starts in less than two months from now.