Remortgaging homeowners have become a rarity as demand for a new deal has failed to reach the level expected with the low interest rate remortgages currently available.  Many of the cheap deals being offered by lenders are the lowest seen in years.  However, that trend is not expected to remain and homeowners are not expected to stay on the sidelines for much longer.  As demand increases then lenders will likely start pulling their cheapest deals.

The warnings from economists of expected interest rate increases have quieted and they are no longer expecting a change in the beginning of next year.  There is a very high chance of the Bank’s interest rate regulators choosing to increase the standard base interest rate in spring.  The reason for the delay is being blamed on struggling global economies especially those in the eurozone.  Slower than expected jobs creations in the UK are also contributing to a slowdown in our economic growth.

According to the Council of Mortgage Lenders (CML), the number of remortgages fell year-on-year for the last five months.  In September there were 28,300 remortgage loans advanced and that is a 12.4% decline from the 32,300 advanced in September 2013.  The value of remortgaging fell as well with a 6.4% decline in a year-on-year comparison of September to the same month last year.

Homeowners are encouraged to consider their need of a remortgage and seek out a new deal with plenty of time to spare.  Loan processing takes more time than before due to the new guidelines lenders must use to qualify a mortgage owner for a new deal.  By giving plenty of time before needing to close the loan, the homeowner will put themselves in a better position to gain approval before interest rates rise or their mortgage deal ends.  Shopping around can be simplified by searching online and requesting a quick, non-obligatory quote.  Internet searches could be a time saver and offer a broader search for those seeking a cheap remortgage.