In March 2020 interest rates hit an all time low of 0.10%. Fast forward to winter 2021 and the inflation was still rising, consistently hitting level above the 2% target the Bank of England has for it. The Bank’s monetary policy committee decided on the 16th December to increase the base rate to 0.25% to try to control the situation. The hope is by making small rate rises over a period of time, it will be equivalent to “easing off the accelerator rather than sticking on the brakes” for the economy.
This has serious implication on the mortgage market, which will inevitably start to price in these predicted rises, as well as the initial rise. Basically if you’re in a position to remortgage this year, act sooner rather than later.