Cheap remortgage deals have been available all year and yet there are still many homeowners that have failed to grab a new deal.  This is quite disturbing when there is so much uncertainty with the economic problems in the eurozone and the continued struggle with the UK economy.  For those homeowners that have had their mortgage deals end and have moved onto their lender’s variable rate the risk is very high that they could be facing financial stress in the months ahead.

Homeowners on tight budgets will be shocked when lenders begin to increase their variable interest rate.  They can raise their rates without warning and will do so outside of any decisions of the Bank of England’s Monetary Policy Committee.  Unfortunately there are many homeowners that are under the assumption that they will be safe sitting on their lender’s variable rate and will not see their rates increase if the MPC does not increase their standard base interest rate.  They are wrong since lenders can increase their rates without warning.  This is likely to take many homeowners by surprise and if lender’s rates continue to rise then budgets will be squeezed even tighter.

The fact that so many homeowners are at risk is unfortunate when there are such cheap lending rates available on remortgages.  The loan to value levels have risen as well bringing remortgages within reach of many more homeowners than could get a deal in the beginning of the year.  It is true that lenders are growing more cautious and are due to raise their rate offerings and to become tighter in lending, but currently there are very attractive deals available.  It is a great time for homeowners to consider a remortgage and secure a low interest rate.