The news from George Osborne is that interest rates are more likely to go up rather than go down. The UK economy is doing quite well and in comparison to other top economic countries it is doing very well. The current Bank of England standard base interest rate has not been changed since March 2009.

When the October meeting of the Bank’s rate setters, the Monetary Policy Committee (MPC), occurs in a few weeks there is not expected to be a change in the interest rate, but there is an expectation that more members will vote for a change, even if the majority doesn’t prevail.

Experts believe the first rate increase will be 0.25% which will bring the historically low rate of 0.5% to a new 0.75%. Thereafter the rate is expected to frequently change and keep rising to a more normal rate, but not as high as it was pre-crisis.

While home buyers seeking a mortgage and homeowners seeking a remortgage may not see the 0.25% increase as much to worry about, the truth is that lenders may not be so cautious in their upward movement of the rates. Funding for lending is getting more expensive and that cost is due to be passed on to borrowers. Lenders are expected first to start pulling their cheapest rates on mortgages and remortgages then they are expected to up the rate on their standard variable rate (SVR).

Lenders could therefore push their rate offerings upward long before the bank makes a move. If so, those waiting on the fence for the Bank to change their rate will have missed out on the cheap deals currently available.

Keeping track of what is in the works in regards to borrowing is a risky hobby. Experts encourage those in the market for a mortgage or remortgage deal to start shopping. The most attractive deals are not going to get any prettier and with so much to save why not take action sooner rather than later.