Remortgage offers from lenders have been at their lowest levels in most cases. Those homeowners seeking out long term fixed rates at a savings have not been disappointed when shopping around. The reason is that lenders have become competitive to gain the attention of borrowers due to the low demand for mortgage lending. While overall mortgage lending has remained low, remortgage especially has been at weak levels. This is a surprise for many experts, given low interest rate offers and that many homeowners saw valuable increases in their equity levels last year alone.

Why has demand remained low? There are many homeowners satisfied with their current low interest rate deal and feel that when ready they have plenty of time and options that will be there for them. Some homeowners have been content to wait it out on their lender’s standard variable rate (SVR) and put off remortgaging despite having had their current mortgage deal expire. Without warnings of the Bank of England pressed to increase the standard base interest rate, and lenders leaving their SVR at rates perhaps lower than the original mortgage, why switch?

The current mortgage lending environment is in a transition. That is the important thing to consider. On the horizon and within sight is the next wave of change, and it is a boost to the housing market as factors are coming together for first time buyers to be showing interest. A boost to the housing market will mean a boost to mortgage lending, which will change the current competitive environment that lenders are operating in now. That means even though the Bank of England will not likely change the standard base rate, lenders will be changing their offers. Cheap remortgages and mortgages will disappear and be replaced with slightly higher interest rate deals and even those fabulous extra incentives will be pulled from offers.

As demand grows, lenders need to offer less enticing offers. For instead of the need to tempt borrowers, they will have a steady flow of customers looking to make a deal. Those homeowners considering a remortgage might want to shop around sooner rather than later before interest rates change, because they will be changing. It’s a matter of when not if.