Cheap remortgage rates are going to be changing.  This will come as a surprise to the homeowners that have come to expect cheap remortgage rates as the new norm.  It is especially surprising to the homeowners that thought as long as the Bank of England’s Monetary Policy Committee leaves the standard base interest rate alone that cheap remortgages would remain.  In the historical sense the remortgage rates that are expected in the next few weeks and months will still be considered cheap.  However, to the homeowners that saw the cheap remortgage interest rate offerings of a few weeks ago and didn’t remortgage the new expected rates will seem far from cheap.

Lenders are pulling their cheapest rates as they become more cautious due to the economic outlook in the UK and eurozone.  A possible second recession is pushing lenders to relook at their risk in lending in such an economic climate and that is causing them to remove their cheapest interest rate offerings.  Lenders can and will do this with their offerings as long as the risk in lending seems bleak in face of bad economic reports.  They will do this even if the Bank of England’s rate regulators leave the base interest rate unchanged.

Rates associated with remortgages have already been changing and will do so over and over again as lenders reevaluate their offerings.  The cheapest of the remortgage fixed rates have disappeared from most major lenders and are likely to never return to such low levels.  Homeowners must wake up and take notice that the cheap remortgage rates they had come to consider the new norm is changing and they could be missing out on saving a lot of money.