Cheap interest rates are no longer going to be the norm and homeowners are likely to find the adjustment difficult to grasp.  The entire last year was filled with cheap interest rates with remortgages and cheaper ones came around after homeowners started to drop demand for a remortgage deal.  It is easy to get into a mode of expecting these offers to remain.  This would especially be true since the Bank of England’s Monetary Policy Committee is not expected to increase their rates at all in the first half of 2012.  Yet homeowners would be wrong if they expect cheap interest rates with remortgages to be the new norm.

Cheap interest rates associates with remortgages are going to be disappearing.  Lenders are becoming more cautious and are seeing more risk in offering funds to borrowers.  This risk will equate to higher interest rate offerings.  The cheap interest rates that were available just weeks ago have already been replaced with ones slightly higher. 

The increase in lending risk is being considered due to the ongoing problems in the eurozone and the weakness in the UK economy.  No longer will the fall in demand for remortgages be a concern for lenders.  Instead they will consider it a safe situation in such a cautious lending market.  No lender wants to repeat the problems that occurred a few years ago and so the effort to be cautious is even higher than before.  Cheap interest rates are not going to completely go away for by historic comparisons the current rates are very good.  However the cheapest rates are due to disappear.  Cheap interest rates are available now but by no means are they the new norm so homeowners should consider a remortgage deal soon.