The shock result of the Brexit vote sent a wave of disbelief through the entire economic system in 2016. In the span of a few hours, the future of the UK housing system was driven off script and uncertainty began to take hold. Housing specialists threw their arms up and predictions and forecasts were left untouched for months. Now, Brexit negotiations continue and the future is starting to become clearer. Part of the arrangement of the Brexit vote two years ago came with a caveat in regard to interest rates. Home owners could see a possible rate rise by the end of this month and should consider remortgage.

An hike in interest rates could take place by the last day of this month, according to some housing specialists. This rise in rates will not take place due to an increase in the standard base rate, but rather a special financial measure which was implemented only days after the Brexit vote. This financial measure known as the Term Funding Scheme was designed so banks and building societies could borrow from the Bank of England at almost no cost. The referendum included a 0.25% rate cut and the intention of the Scheme was for profitability to continue at a brisk pace, hence the free funds from Bank of England.

Banks and societies borrowed money without hesitation. From small lenders to large, they took advantage of free interest cash. At the time, it enabled banks and societies to function without fear whilst savers saw no benefit.

At the end of the month, those borrowers will have to start repaying more than £100bn. According to some housing experts, rates could remain at the current level for some time and will not increase, but nothing is in stone. Experts feel remortgage at this time could be a wise choice due to the uncertainty which lies ahead of the market.