The standard base interest rate has remained at 0.5% for 22 months now and many financial analysts have predicted that this will remain the norm during 2011. However, there are those that warn that thinking of 0.5% as a norm just isn't practical in the face of rising inflation. It is probably due to the warnings that so many have been seeking a fixed rate remortgage. Few are thinking that the "wait and see" tactic is still smart and trackers are no longer the choice with warnings of rises in the rate.

In 2009, fixed rate mortgages were the product of choice for most remortgage applicants. This switched in 2010, with variable rate mortgages becoming the borrower’s favorite with so many saying the rate would not change for awhile. In fact, there are some with tracker rates that have ceiling levels that should the rate rise, they are still in a safe position. Fixed rates though take out any risk ahead and so many are choosing them versus the tracker.

The base rate of 0.5 per cent was set in March 2009 and currently it is the longest period of a set rate since the aftermath of the World War II, as well a historical low since the same time period. Warnings of interest rate rises will be welcomed by millions of savings account depositors and others who rely on their savings for income. But they will find that the rise in the rate has increased the cost of living as that rise effects their mortgage payments.

Warnings of interest rate rises will be translated quickly into an increased take-up of fixed rate mortgage deals. Trackers still are the better deal, but the risk of a tracker versus a fixed rate just isn't what anyone wants this day in so much uncertainty. Unfortunately lending is still constrained and homeowners are finding it difficult to secure remortgages, at least more now than this same time last year. Good remortgages fixed rate deals are to be had, it is just going to mean a bit more shopping around to secure the best deal available.