Is This a Good Time to Remortgage?
Timing is extremely important when considering a remortgage. Last week gave us possibly the first sign of the record low Base Rate coming to an end.
One of the MPC (Monetary Policy Committee) members Andrew Sentence voted for an increase to 0.75 per cent of the Base Rate in last month’s regular meeting. This could be the first step taken toward raising the Base Rate due to the possibility of inflation becoming an issue. This marks the first time in an extremely long time (2 years) that an MPC member has called for any type of increase to the Base Rate. There is forecast for inflation to increase further in the coming months thanks to the VAT increase. Those concerns of inflation are only going to grow stronger. There is a better chance that there are still a few months to go before the Base Rate begins its increase upward. What is certain is that it will start to happen sooner rather than later. Variable rate loans are attached to the base rate, so those with variable rates will be affected by a base rate increase.