Today, the Bank of England’s Monetary Policy Committee (MPC) will vote on whether the UK economy could benefit from an increase to the standard base interest rate. If they do increase the rate it is expected that it will be increased by 0.25%. That will bring the Bank’s rate to 0.75% which will be three times the level the rate was at this time last year.

The current rate is 0.50% having been increased last November from the long standing 0.25% that had remained steady throughout the grip of the recession.

Many homeowners are expected to be caught unaware in the midst of an interest rate increase. There are many that have let their current mortgage deal end and have been moved to their lender’s standard variable rate (SVR). In doing so, they have put their mortgage deal at risk of seeing an increase that could cost them a lot of money. Some experts estimate that homeowners will be paying hundreds of pounds more a month and thousands over the course of a year with just a 0.25% increase.

It will probably not be long after the MPC votes to increase the rate that the remortgage deals offered by lenders will be changing. Homeowners are expected to rush to remortgage in the face of higher interest rates to protect their financial situation.

If the MPC does hold off and does not increase the rate during the August meeting on Thursday, then it will be a lucky break for those homeowners that have put off getting a remortgage. They will have another chance to secure a low interest remortgage and put off paying more than they have on their repayments.