There is still time to find a cheap remortgage or mortgage deal as it is expected that the Bank of England will allow the standard base interest rate to remain steady at 0.5%.  Homeowners seeking a remortgage and hopeful home buyers should not remain on the fence for long however.  For lenders will likely increase their offerings before the Bank actually increases their rate and with that in mind there is less than a year for changes to be made according to experts.

Many have called on the Bank of England’s Monetary Policy Committee (MPC) to raise the Bank’s rate sooner rather than later to cool the rising level of house prices.  Many fear the soaring house prices are an indication of a housing market boom that will need to be stopped before it gains too much ground.

The Bank has tried to squash those that are worried about both the house prices as well as those worried about the economy being too weak to support an interest rate increase.

The Bank’s Governor, Mark Carney, has assured that there are adequate financial tests in place to signal when the base interest rate is in need of a shift and he has assured that when it occurs it will be done so slowly.  He did point out that no one should expect the low rate to remain for a lengthy time for the economy is rebounding and the base rate will increase. 

Most experts have forecasted that the standard base rate will be increased in the first quarter of next year.  Lenders will likely change their interest rate offerings according to the demand for mortgage lending and should not be expected to remain as steady and low as the Bank’s rate.  Waiting could make a borrower lose out on savings.  If the time is right now for a borrower then luckily cheap remortgage and mortgage deals are available.