Forecasts are pouring in for the expectation of what will occur during the next meeting of the Bank of England’s Monetary Policy Committee (MPC) scheduled for 2 November. The last meeting of the MPC broke the fourteen consecutive meeting trend in which the members had voted for the standard base interest rate to increase. The September meeting had a majority vote to keep the current 5.25% rate steady with some believing the rate will be the peak needed to bring inflation under control.

There was not a meeting in October which left a lot of time for borrowers to create a strategy for their own unique financial needs. This included homeowners having to choose whether to remortgage at the end of their mortgage term. As many come to the end of their current term this year or do so in the first half of next year, the choice is to remortgage at current rates or allow their lender to move them to their standard variable rate (SVR).

Avoiding a SVR is the experts’ suggestion. It is riskier, subject to quick increases and normally a higher rate, and therefore more expensive, than the rates offered through a remortgage. A SVR is at its core, variable, and therefore the homeowner will not have a fixed rate that could shield them from future rate hikes as choosing a fixed rate remortgage would do.

The MPC vote for increasing the base rate is to bring inflation under control. Consumers have had their budgets stretched due to higher prices, but higher interest rates could also be difficult for consumers. It is a difficult balance for rate setters to navigate.

The rate of inflation remained unchanged during the last report. Stuck at 6.7% it is still more than three times the target rate of 2.0% set by the Bank.

There were many that would have expected another stay of the current rate, but others that would see a slight increase necessary after inflation remained stubborn. However, the latest report on unemployment will need to be considered by the MPC.

Official figures on unemployment released Tuesday revealed it had risen to 4.2% between June and August. The previous report on unemployment was 4.0% for March to May. The Office for National Statistics (ONS) reported the number of employed declined by 82,000.

Meanwhile, another report from S&P revealed that manufacturing businesses are growing cautious about consumer demand and are cutting back on output. 

This data and more has pushed the forecast for the 2 November MPC meeting to conclude with the base rate remaining at 5.25%. It is a good outlook for those that have yet to borrow, such as the previously mentioned homeowners. Home buyers, especially first-time home buyers will have more time to shop for a home, build their deposit, and find the right mortgage deal.

Lenders have been fighting for the attention of borrowers due to the decline in demand. It has led to a more competitive lending environment, and some have lowered their offerings. Others have added more products for home buyers and homeowners alike. This trend could continue, but the latest unemployment information and stubborn inflation prior to the holiday season could put risk in the eyes of lenders. If so, rate offerings could increase even if the MPC votes for a stay in the rate.

It should be noted that homeowners nearing the end of their mortgage term do not have to wait until the final day. Preparing for the expiration is possible as most are allowed to secure a remortgage up to six months before their term ends without a penalty fee.

Shopping for remortgage quotes is fast and easy to do online. Visiting the website of a remortgage broker could put numerous quotes from a variety of lenders in front of the homeowner to compare. Brokers might also have exclusive deals from lenders not offered directly to borrowers from the lender. The homeowner could also visit remortgage lender websites to gather remortgage quotes. No matter how it is done, getting remortgage quotes is a helpful task to undertake and it takes little effort or time.

The next three MPC meetings will be held on 2 November, 14 December, and 1 February. For those with borrowing on their priority list, there are many factors at play than just the decision of the MPC and rates could change even if the Bank’s rate stays put. The best strategy according to experts is to shop for a remortgage and determine what offers are currently available no matter where one is in their current term. If a deal looks good, and the choice to wait is too risky, then taking action sooner rather than later could be the best option.