Borrowing is cheap and is likely to get even cheaper for those searching for it.  However not everyone can qualify for the best offerings.  It is unfortunate with all the expectations in future lending rates that there will still be those that cannot obtain the needed lending funds to make their financial conditions in the economy better.

The lenders have been helped out by the government through a Funding for Lending scheme only recently introduced.  By offering low cost funding for lending the government has offered UK lenders an alternative to the expensive funding costs found in the global lending market.  The new scheme allows lenders to keep funds flowing to those that need it and at cheap rates.

There have already been many cheaper offerings put onto the market for homeowners looking for a remortgage to choose from.  One was the recent historically low five year fixed year remortgage deal at 2.99% offered by HSBC.  Other lenders are expected to follow the trend and begin to offer better deals than what was seen only weeks ago.

How long the trend will last that a competitive market is in place between lenders will be hard to foresee.  It isn’t expected to peak overnight, nor is it expected to disappear as fast, but experts warn it is not a new normal and those that can benefit from a cheap remortgage deal should take advantage of new offers as soon as possible.

Unfortunately the lowest deals currently being offered are for those with good credit ratings and those with higher equity levels and deposits.  Hopefully the cheap offers will soon be available to a wider group that could benefit just as much as those that are in reach of the current deals.