Remortgage lending may be the victim of another recession.  The news that the UK is in the middle of a double dip recession for the first time in almost four decades will not sit well with lenders.  There is also information that the private sector plans to cut jobs rather than create jobs and hire which is another blow to economic recovery.  Lenders had grown cautious as the eurozone news heightened over difficulties and now with the latest news about the economy lenders will only grow tighter fisted with their funds.  Remortgage lending will be tighter and the best deals are going to disappear.

Lenders began pulling their cheapest deals in the end of the year.  As they became more cautious about lending due to their perceived risk of doing so in the midst of the eurozone problems remortgage deals began to change.  Lenders began to pull their low interest rate offerings and replace them with slightly higher rates.  Homeowners began seeing lower loan to value remortgage requirements as well.

Homeowners that have not yet locked in a low interest rate remortgage may want to consider what the future may bring.  While the Bank of England’s Monetary Policy Committee is not expected to raise their rates lenders will be changing their remortgage offerings.  The offers from lenders will not be at the cheap levels seen at the end of Summer 2011.  Also, lending will grow tighter and homeowners are going to find it much harder to obtain a remortgage.  Things of course can change in a flash when it comes to the economy at times, but right now lenders have every reason to consider that lending is riskier now than it was at the beginning of last year.  Homeowners may want to more seriously consider a remortgage now rather than wait.