This week the Bank of England’s Monetary Policy Committee (MPC) will be coming together for their October meeting.  Economists do not believe that there will be any move to change the standard base interest rate.  That means it will be left at 0.5 per cent keeping borrowing at a very affordable and cheap rate.  Homeowners should be pleased to see the expectation that there will continue to be great remortgage deals available throughout the month of October. 

All things staying equal throughout the month with the current state of the economy should leave the lending market looking to bring borrowers in to make a deal.  While lending will still have strict lending criteria there will be some easing.  For those seeking a remortgage or new purchase mortgage there will be higher loan to value deals as new products are brought to the market.  Lenders are still in a competitive environment among one another and this has pushed interest rate deals down and loan to values higher.  Administrative fees on new deals have fallen as well.

While the expectation is that there will be no hike to the interest rate there is a possibility that there will be some quantitative easing that will occur.  Economists expect the QE move to come either in October or November.  This move is expected to help boost up a sluggish economic recovery.  The economy has failed to gather momentum and most economists feel the MPC needs to act and give it a kick through more QE.  Michael Saunders, economist at Citigroup has forecasted that the UK economy will grow by 1 per cent this year and just 0.7 per cent next year.