The calm before the storm is giving rise to some great remortgage deals for homeowners who have yet to take advantage of the Bank of England’s historically low interest rate of 0.5 per cent.  In the beginning of the year there was a great amount of noise as to the impending interest rate rise that was surely around the corner.  In the wake of this noise, homeowners rushed to grab remortgages to avoid an interest rate increase.  Now, the forecasts for an interest rate increase are at the minimum months away and demand from homeowners has dropped.  This has produced a calm in homeowners and a more competitive market among lenders.

Lenders are having to bring their best remortgage deals to the table to bring in homeowners for a remortgage.  That is good news for those that have yet to sign a deal.  Incentives are better, rates are better, and even lending criteria is better.  Easing of lending restrictions have opened up a better possibility for remortgage approvals, even for those that were previously denied.

Without the threat of an interest rate increase many homeowners are finding it easy to move the worry of a higher mortgage payment to the back of their mind.  This could be a quick reaction in the face of a stressful situation, but there are millions of homeowners that will be rudely faced with budget busting increases and few low rate remortgages to be found once the rate does in fact rise.  It won’t stay unchanged forever, and once the rate increases the calm will be gone and storm will have arrived as the interest rate not only increases but likely does so several times according to some experts.