Remortgage Lending Looks Much Different in the Beginning of 2012
Remortgage demand in the beginning of 2012 looks very different from remortgage lending in the beginning of last year. In the start of 2011 there was a very real threat of a possible increase in the long sitting 0.5 per cent interest rate set by the Bank of England’s Monetary Policy Committee (MPC). In an attempt to escape rising interest rates homeowners sought security in fixed rate remortgages and the demand for a remortgage deal was being met with low interest rate deals from lenders.
Over the first few months of last year it was evident that the economy’s recovery was being held back by other factors outside of the efforts of the UK government. The lack of any growth in the economy caused the threats of an interest rate hike to fade. Lenders stayed tight in their lending practices and kept remortgage offers attractive. There were plenty of remortgage products being offered yet fewer homeowners could gain approval for a deal.
Toward the last quarter of the year lenders became more competitive for the attention of homeowners and the wealth of remortgage offerings grew and became cheaper. Lending eased and more homeowners had remortgage offers within reach. Then as things became shaky in the eurozone and warnings of another recession increased lenders became cautious and the cheapest remortgage deals began to disappear.
Things look much different in the remortgage lending market but one thing remains the same and that is that homeowners have very good deals available. For a homeowner that wants the security of a set interest rate while lending practices are eased then a remortgage with low interest rate offerings is available.