The Monetary Policy Committee monthly meeting takes place today amid an unchanged view of the short term outlook for the UK economy.  Inflation remains one of the key issues of concern for the nine member panel which collectively sets the base rate for the Bank of England.  Although more Quantitative Easing will be an attractive tendency for the MPC, most economists think the group will approve more QE to be injected later in November.  This will not affect the current housing market which continues with its own challenges.  Mortgage loan and remortgage activity still need a boost to reach the levels seen back in 2007.

The performance of the government’s Funding for Lending scheme is still under close scrutiny by governor Sir Mervyn King.  The flow of credit remains a consistent rough spot in the housing market, especially with the slow selling season quickly approaching. 

Improved interest rates were supposed to have a significant effect on remortgage activity but so far there have been a shortage of households taking advantage of the opportunity.  The fact that households are having a difficult time meeting lending criteria is mainly to blame, according to economists.

Although an improved activity level has yet to be achieved, remortgages can still offer many benefits which are sometimes not considered by homeowners.  Those benefits include but are not limited to a decrease in the amount of mortgage payment due each month, a stretch in the length of term of repaying the loan, and a possible surplus in cash when the process is complete.  Remortgages can be researched and calculations made online with the aid of on-site tools.