Homeowners may be further considering a remortgage if it means saving and adding more to the monthly budget by cutting on interest costs. Recent news of higher oil prices and the increase in inflation has one thinking that perhaps it is time to begin looking for ways to cut costs and interest payment costs are one place to look. Also, in the event of an interest increase then a low fixed rate is like securing a safety net against further costs in the event of a hike.

The supermarket Asda recently funded a research study and found that families are 9 pounds a week worse off than they were a year ago due to the increase in inflation. Data showed that January was the 13^th straight month of decline in disposable income for the average family when comparing a year on year analysis. The decline is due to inflation rising faster than net incomes. Currently the Consumer Price Index, which is the index used to measure inflation, is at 4 per cent.

With few households able to increase income the best choice for surviving this economy is to make cuts and those cuts have been realized in households for many months now. Homeowners that haven’t even considered a remortgage, believing their deal was good enough, may begin to think otherwise.

Revisiting their current mortgage may give them a reason to consider a remortgage and find savings that are just flying out of pocket and going to interest payments.

Charles Davis, managing economist at the Centre of Economics and Business Research, which analyses the data for Asda, said: "With annual Consumer Price Index inflation double the Bank of England's target rate, while earnings growth remains modest, average households are seeing spending power sharply eroded.

"This trend is likely to continue into 2011, as inflation remains elevated and the labour market recovery lacks conviction.’ Households had a total income of £722 a week during January, which fell to £589 once taxes were taken into account."

If a remortgage is in the future for a homeowner it would be good to realize that the remortgage market has been very active. Lenders have been busy in the past few months changing rates that are available and pulling some of their best fixed rates from the market. Looking at what you have and what you could have with a remortgage makes good financial sense. Knowing all you can about your expenses, especially your current mortgage, gives you better insight to where savings might be found. With low interest rates a remortgage may just make a lot of sense as sell as a bit of a safety net for the days ahead.