The next meeting of the Bank of England’s Monetary Policy Committee (MPC) is days away. There is much discussion among experts and others about the outcome of the meeting. There are very few that believe the meeting will conclude without a hike to the standard base interest rate. Most do believe there will be a higher rate, but how much higher is still up for debate. Some believe that the MPC should be more aggressive and perhaps increases from here on out will be much higher than the slow and steady 0.25% increases seen so far.

The Bank’s rate had sat in 2021 at the historic over 300 plus year low of 0.1%. During the December 2021 meeting of the MPC, the rate was increased and has continued to increase at each of the MPC meetings, all four of them. The rate is now at 1.0%.

The last meeting the increase was 0.25%, but some members would have liked it to be twice that amount and push the increase to 0.50%. 

Inflation is still on a rise and it is putting financial difficulty on household budgets. Despite the fact that higher interest rates will put a strain on borrowers, especially those holding onto large value loans such as homeowners or business owners, the MPC will need to concentrate on putting a leash on the inflation rate.

Inflation is said to be nearing 10.0%. The Bank’s target rate for inflation is 2.0%. The cost of living could continue to rise despite another MPC increase, unless of course say some experts that the members vote for a larger hike than 0.25% and choose one much higher.

This could very well happen as there is not a scheduled MPC meeting for July. Therefore, the move the MPC takes in June will need to work on the economy for two months until the next meeting in August. A more aggressive move could certainly be the outcome.

This should put homeowners on alert. There might not be another time in over decades that homeowners should definitely seek out a solution from paying more than necessary on their repayments and shop for a remortgage.

Experts encourage those homeowners that allowed their mortgage term to expire and be moved to their lender’s standard variable rate (SVR) to shop for a remortgage as soon as possible. Those that are close to having their mortgage deal end should also consider shopping and even those not close to their expiration. Choosing from the current offers from lenders could offer savings from choosing the offers that will be available in weeks or months ahead.

Choosing a fixed rate remortgage would offer a safety net from rising rates. The rate chosen will be fixed until the end of the term and will offer peace of mind from the expected increases by the MPC over the coming months and perhaps into 2022.

It is simple and quick to determine what remortgage offers are available by shopping online. Going website to website of remortgage lenders, or by doing a one-stop shopping through a remortgage broker, a homeowner could have remortgage quotes in hand to compare and review in a matter of minutes. 

It is not an opportunity to be missed, according to experts. In fact it could be the only strategy that deserves a spot on the top of a homeowner’s priority list as a remortgage could offer escape from rising rates, security, and other benefits when there are few other options available as inflation surges and interest rates as well.

The next MPC meeting is set for 16 June.