The latest offers from mortgage lenders have been some of the lowest deals found on the market in years and yet the boom expected in remortgaging has failed to materialize.  It could be that homeowners have been desensitized to the warnings of interest rate hikes.  If so, there could be a wide number of mortgage holders that will be in financial difficulty once the rate begins its steady climb back to a normal level.

The current standard base interest rate set by the bank sits at 0.5% which is a historical low and has not been changed since March 2009.  With the rate having sat for so long, many borrowers believe it will continue to be as low but experts say it is sooner rather than later that the Monetary Policy Committee will vote for a rise in the rate.  Another reason many homeowners may be staying away is due to the fact that many believe the economy is not yet ready for more expensive borrowing.  While the economists insist that the recession is over and better days are here, the homeowner hasn’t felt it yet. 

There are very low deals on the market right now, with Tesco Bank having just launched their five year fixed rate deal at 2.99%, but not everyone would find it possible to obtain such a low interest rate.  The best remortgage deals from lenders are reserved for the best borrowers with the best credit history and highest equity levels.  Many homeowners have been disappointed in the past with the deals they qualify for and may believe that having been turned down in the past they wouldn’t qualify now.  That may not be true with the rising level of equity due to a stronger housing market.

Experts say that homeowners should look thoroughly at remortgage offers.  The one with the lowest interest rate is not always the best deal for the homeowner.  Fees associated with a deal can make one remortgage less of a savings overall than one with a higher interest rate.  For those with special remortgaging needs or those that need someone to help them shop for a lender that will be willing to look at their unique remortgaging requirements, a remortgage broker could be helpful.  All homeowners should be shopping around now before rates increase for the recent lowering of interest rates by lenders is not expected to last long.