The countdown leading up to the next Bank of England’s Monetary Policy Committee (MPC) meeting has begun. Next week, the MPC will meet and decide on the state of the economy and discuss inflation. The result will be either another rate hike or allow the rate to remain steady. There is little to no chance of a rate cut. The expectation is for the rate to be increased by at least 0.25%, but more possibly 0.50% because while inflation has declined, it is still far from the target of 2.0%.

Inflation declined to 7.9% in June and remains a concern. It is in fact more of a concern than the hardships the higher interest rates are having on borrowers. Inflation is a threat that could be a long-term concern and continue to drag the economy if it does not come under control. This is why experts believe the upcoming MPC meeting will result in a higher rate, and it will not be the last.

The meeting next week could be the 14th consecutive gathering of the MPC that results in an increase to the standard base interest rate. There was not a meeting in July, which is why perhaps the June meeting resulted in the surprising higher rate hike of 0.50%. 

The possibility of an increase in August to the standard base interest rate has motivated borrowers, especially homeowners, to take action to escape the more expensive rates. Homeowners have been seeking remortgages to take advantage of the opportunity to lock in a current rate and shield against higher ones. The most popular remortgage product has been the five-year fixed rate remortgage. 

While the majority of remortgaging homeowners are most likely those that have had their mortgage term end or are close to having it end, some are choosing to take on a penalty fee to close their term early to avoid waiting and facing higher rates. It is a strategy to keep from paying more than necessary.

There are many homeowners that are having their term end this year that will be moving off an interest rate that was chosen two years ago when rates were historically low. 

At the end of their term, they could choose a remortgage or allow their lender to move them to the lender’s standard variable rate (SVR). The remortgage is more likely to be the smaller interest rate in comparison to the SVR which could save the homeowner money. Choosing a fixed rate remortgage could save them even more for if rates increase, they would not be impacted.

Experts encourage homeowners to shop for a remortgage no matter where they are in their term. Those close to having their term end will benefit from shopping sooner rather than later, for most could remortgage if they are within six months of their expiration without a penalty. The homeowners who moved to a SVR could possibly save a substantial amount of money with a remortgage choice and should definitely shop for a deal. Even those not close to having their term end could benefit from shopping for a remortgage, for they could use the information to prepare and consider options they might make later.

The weekend is a perfect opportunity to shop for a remortgage online. In a matter of minutes, the homeowner could have quotes in hand to review and compare. Shopping at the website of a remortgage broker could offer numerous quotes from a variety of lenders as well as the offering of an exclusive deal from a lender that would not be available directly to borrowers. There is also the option of going from website to website of remortgage lenders to gather quotes.

Once quotes are available to a homeowner they can review and determine which deal is the best for their unique ends. While the historically low rates of two years ago are gone and a homeowner’s repayments could be more expensive, there are savings to be found, but the opportunity to do so could be missed without shopping for a remortgage. Taking advantage of the ease of the weekend to remortgage shop could make all the difference for the homeowner to save money before rates become more expensive than they are already.