Will there be an interest rate hike by the Bank of England’s Monetary Policy Committee (MPC) next month or not? That is the question that everyone is asking and we will soon know when the MPC meeting occurs on 2 August. Months ago the answer would have been a strong “Yes,” and then the expectation changed to a “No.” Homeowners hoping to escape higher interest rates have probably accepted the negative answer and moved on, and yet there is now a strong expectation that the MPC will indeed raise the rate and if so it will catch many homeowners off guard.

Those that have waited to get a remortgage and considered that they had months to wait before needing one could lose out on the opportunity to secure a fixed interest rate at the now current interest rate levels. Such a move could cost them hundreds of pounds per month and thousands annually according to experts.

If indeed the MPC votes to increase the rate, then lenders will quickly increase their own deals. Homeowners will have to accept that the new deals offered will be less of an overall savings for years to come for a household budget.

There is still time, though little, for those not willing to take the risk, to shop for a remortgage and start the process. However, homeowners should take notice that some believe another rate increase could occur not long after the first for 2018, so even if they do face a rate increase before securing a remortgage doing the leg-work now will have its benefits.

Experts suggest that homeowners do their homework online and find out what is available from lenders and be willing to throw away their loyalty to the current lender in favor of a better deal from a new one. Homeowners should also take into account the entire deal to find the best savings. That means considering the cost of any fees, legal work, and valuations. In doing so, they may find that the lowest interest rate offered with a remortgage offers less of an overall long-term savings than one with a slightly higher rate.

The good news is that there are currently many lenders still in a competitive mode and that will help homeowners find the best remortgage for their needs, but they are going to have to take into consideration that sooner or later rates will increase and the deals available now are likely the best to be seen for years to come.