The decision for the MPC (Monetary Policy Committee) of the Bank of England to keep the base rate at 0.5 per cent was forecasted by most of UK economists. Although the Organization for Economic Co-operation (OECD) believes, at an ongoing base rate of 0.5 per cent, interest rates will need to increase to as much as 3.5 per cent by the end of 2011 to keep high inflation in check.

The OECD said: "Rates would have to start rising this year from the historically low level of 0.5 per cent because inflation expectations were creeping up.

They added: " The reversal of the December 2008 VAT cut and higher fuel prices have contributed to the recent jump in inflation. Notwithstanding the temporary nature of these price developments, the gradual drift up of some measures of inflation expectations implies a need to increase interest rates earlier than previously thought and no later than the last quarter of 2010. The projected increase of core inflation to the Bank of England target warrants policy rate to 3.5 per cent by the end of 2011.

Simon Gannon, head of Knight Frank Finance, who earlier this week set a great example by claiming he was fixing his own mortgage for five years said: "Now is the time to seriously consider reviewing your mortgage if you are in a tracker or variable deal. It is not certain when and how quickly interest rates will rise, but what price do you put on peace of mind."

He further added: "There are some excellent deals right now, especially if you have more than 30 per cent equity in your home, and the rise in your current monthly payment may not be as great as you think."

The remortgage can be an excellent tool to use when seeking a lower payment. There are a great number of different deals from many different lenders. With interest rates so unpredictable, now is the perfect time to do some research.