Cheap remortgages remain available for homeowners looking to secure a deal.  The Bank of England’s Monetary Policy Committee (MPC) in their January meeting chose to leave the standard base interest rate at a low 0.5 per cent again.  The expectation is that 2012 will close out just like last year and the entire year will not see a rise in the MPC’s interest rate.  It would seem then that homeowners could sit back, let their mortgage deal end and pay on their lender’s variable rate without worry.  That isn’t the case.

Despite the longevity of the MPC’s low interest rate standing it doesn’t mean that homeowners should sit and wait over the next few months.  The interest rate may be remaining set but that doesn’t mean that cheap remortgages will continue to be the norm.  Factors impacting the economic recovery could hinder homeowners’ ability to borrow as well.  If remortgage approvals become hard to come by and cheap remortgage offers get pulled by lenders then the fact the MPC has not raised interest rates will have little value.

Lenders are already showing a more cautious outlook on lending.  They see lending as a more risky venture and therefore the best deals are disappearing and being replaced by higher value interest rate offerings and that includes cheap remortgages.  Cheap remortgages are being replaced with those that are slightly higher.  Many remortgage products are being pulled and are not being replaced lowering the number of remortgage products available to homeowners.  Great remortgage deals may be available currently but that doesn’t mean it is the norm and homeowners should be alert as to when to grab cheap remortgages before they disappear.