In news leading up to the next meeting of the Bank of England’s Monetary Policy Committee (MPC), there could be reason to take a deep breath and exhale for those hoping for financial relief. Inflation has long remained stubborn and reached double digits, which was far from the target rate of 2.0%. This required the MPC to make increases to the standard base interest rate. Starting in December 2021, and through to last month, there have been 14 consecutive meetings that resulted in a higher interest rate.

In August, the rate was increased by 0.25% and while there was not a meeting held in July, the June meeting resulted in a 0.50% increase in the base rate.

The Bank’s rate is now at the highest level in fifteen years at 5.25%. The next meeting, which will be held this month on the 21st, is expected to take the rate to a minimum of 5.5%. 

Of course, in borrowing, lenders are not going to be offering the standard base rate, but likely more and the average fixed rate for a two-year term is 6.19%. Rates can vary for those seeking a mortgage based on their credit history, the deposit offered, and the offerings available from the lender. Some home buyers will see rates nearer to 7% in their search for a mortgage loan.

For homeowners seeking to renegotiate their property loan at the end of their mortgage term, rates are close to that of mortgage loans. Some are close to 6.0% for fixed rate remortgages, while those not remortgaging at the end of their term and moved to the lender’s standard variable rate (SVR) could be paying with interest rates above 7% and closer to 8%.

The forecast had been for inflation to remain a problem for the economy and consumers throughout 2024, but recently the expectation is for inflation to take a deeper tumble in the near future and offer relief for those fearing much more expensive borrowing than what is currently available.

There is no expectation of rate cuts by the MPC, but that doesn’t mean that lenders won’t be offering more competitive deals to borrowers, whether that is a home buyer or a homeowner. 

For instance, this week there were competitive deals coming out from lenders to attract the attention of borrowers. The higher rates have left the lending market less crowded and in an attempt to bring those to the table that were hesitant, lenders began to put new products on the market with lower rates than offered previously.

So, while rate cuts are not expected by the MPC, lenders might help by offering mortgages and remortgages that are attractive due to possible savings and perhaps even incentives such as free legal work. This is why it is important to shop around for deals, especially for homeowners nearing the expiration of their current mortgage term.

Homeowners often feel loyalty to their current lender, as they are the one that helped them into their home. Also, accepting current lender offers at the end of their mortgage term can be a simple task. However, there is often money spent that need not leave the household budget simply due to the erroneously place loyalty.

Borrowers often discover that lenders are all quite lovely when they are the right lender to choose, especially if they keep you from paying more than necessary. To find the perfect match, one simply must shop for a new deal. It is easy and quick to do online. 

Shopping the website of a remortgage broker could put numerous quotes from a variety of lenders in hand to review and compare to narrow down to the best remortgage offer for the homeowner. Visiting remortgage lender individual websites could also allow the gathering of quotes one by one. It should be mentioned that brokers could have exclusive deals from lenders not offered from them directly to borrowers, which is why experts often encourage homeowners to shop with remortgage brokers when doing their research.

There may be fewer interest rate hikes as had been previously forecasted if inflation responds favorably. However, homeowners should not leave it to chance or forecasts when there are currently unexpected opportunities available in remortgage lending due to the current competitive market that has developed.

Those nearing the end of their term, those already on a SVR, and even those seeking important information for their strategy planning for the future should consider a few moments online this weekend to shop for a remortgage deal. It could result in one finding the best remortgage offer to help one not just survive this economy, but perhaps thrive in it.