Cheap remortgage rates have been the norm for over the entire year and that may soon change in the new year of 2012.  The cheapest rates which were seen in the last half of 2011 were due to a competitive market created by lenders.  They sought to bring in homeowners to make a remortgage deal and offered cheaper and cheaper rates.  This was necessary as homeowners slowed down on their efforts to remortgage when the warnings of a possible Bank increase in the interest rate died.  When the economy remained weak the possibility of an increase the interest rate by the Bank of England’s Monetary Policy Committee declined.  This left homeowners comfortable and without cheap remortgage rates they had little motive to grab a good deal.  So lenders offered even better cheap remortgage rates and homeowners came in to make a deal.

That competitive environment in which lenders have sat in the last half of the year is changing.  A more cautious outlook is emerging.  This cautious outlook is due to the problems in the eurozone and the weakness in the UK economy.  As lenders become more fearful about borrowers being able to pay back their loan they are becoming more cautious.  The risk associated in lending means a rise in remortgage offers.  Cheap remortgage rates are already disappearing and homeowners are missing out.

As the cheap remortgage rates keep being pulled by lenders over the next few weeks those homeowners that have yet to make a deal are missing out on savings.  While the rates are still attractive it is time to seriously consider those cheap remortgage rates remaining on the table for homeowners to grab.