The March meeting of the Bank of England’s Monetary Policy Committee (MPC) concluded with the majority of members voting to keep the standard base interest rate steady at 0.5%. The rate had been for years at the historic low level of 0.25% until November 2017. The increase at the end of last year, which doubled the rate to 0.5%, was not a surprise as the MPC had hinted for months an increase was coming.

At the start of 2018 most expected at least one more rate increase later into 2018. However, there are hints that a rate increase will occur as early as May. That means there could be even another one by the end of the year according to some experts.

If a rate increase does happen in May, then there is a strong likelihood that it will be another 0.25% hike. Meaning that since November the rate will have increased three times by a May increase in comparison with the same time last year.

Three times the level of interest rate could be paid by homeowners, if they don’t seek a remortgage.

Those at risk of paying more than they need to for their mortgage repayment are those that have had their mortgage deal end and their lenders have moved them to their standard variable rate (SVR). Lenders will be expected to shift a rate increase quickly putting homeowners into a need to rush to remortgage to keep from paying higher repayments.

Homeowners are encouraged to keep an eye on the warnings concerning rate increases and if securing a low interest rate now would be helpful to a home budget to quickly start shopping around for a remortgage sooner rather than later.