Remortgages are Cheap if a Homeowner will Shop Around
Remortgages offering low interest rates for homeowners needing a new deal will remain another month according to forecasts on the decisions of the Bank’s interest rate regulators. The standard base interest rate will remain at 0.5 per cent for another month if the Bank of England’s Monetary Policy Committee (MPC) moves as expected and does not change the interest rate. However even if the February meeting of the MPC closes out without them touching the standard base interest rate it does not mean that homeowners will see the same offerings at the end of the month as they will at the first of the month.
February is likely to see a change in the number of remortgage products offered as well as the level of interest rates offered. Lenders have become cautious in the wake of the news that the UK economy may experience a double dip recession. The eurozone has also been a thorn in the side of lenders as they see more risk in lending to homeowners and thus have pulled their cheapest deals out of the offerings.
Currently there are very good deals available to homeowners. For those homeowners that have been considering remortgages it may do well for them to think more seriously. If lenders continue to be more cautious then not only will the cheaper remortgages disappear but there will be tighter lending controls and remortgages may be harder to get. A little shopping around will reveal that there are some lenders that have yet to become as cautious as others and good remortgages are ready for the homeowner that wants one.