Remortgage rates should not see any shift due to the Bank of England’s Monetary Policy Committee (MPC).  The MPC is expected to emerge from their first meeting of 2012 without having added to the quantitative easing (QE) program or having touched the long sitting 0.5 per cent standard base interest rate.  Most experts insist the MPC should leave the interest rate alone due to the current condition of the economy which is considered still badly in need of cheap borrowing.

Experts also agree that the MPC should hold off on adding to the QE but should leave the possibility open for next month’s meeting.  The addition to QE in the end of 2011 was to hold off another recession.  Experts want to wait until there is a better insight into how the last quarter of the year did before making any major moves to adjust the economy.  In February there will be more information available for the MPC to consider.  Meanwhile, despite the MPC leaving the interest rate untouched homeowners will not likely escape the first month of the year without seeing changes in remortgage interest rate offerings.  Lenders are cautious about lending and the risk they view is being revealed in the offers on loans such as remortgages.

Remortgage offers saw a change in the last few months of last year.  The cheapest remortgage deals began to be replaced with slightly higher offers as the news worsened over the state of things in the eurozone.  Without clear indication that things are improving both in the eurozone and at home, lenders will continue to keep a cautious outlook.  Remortgages are still likely to be attractive just less so in the end of the month than now.