More signs have been emerging that could mean higher interest rate offerings on remortgages in the weeks or even days to come.  Lenders have been watching closely and reacting to the signs of another recession or other oncoming economic woes due to the eurozone’s problems.  The cautious outlook has already caused some lenders to pull their cheapest remortgage offerings and replace them with slightly higher interest rate offerings. 

As the lenders pull their cheapest rates homeowners will miss out on those low interest rate remortgages.  They are not likely to return anytime soon as the competitive environment that has existed among lenders is fading.  The competitive mood came about when the economic recovery seemed steady and yet there were no warnings for an interest rate increase by the Bank.  Without the Bank of England’s Monetary Policy Committee due to increase the interest rate there was little motivation to bring homeowners in to grab a new remortgage deal.  Lenders became more competitive and offered up historically low interest rate offerings.  For many homeowners they were pleasantly surprised to see offerings of fixed rate remortgages very near the offerings on trackers.

Economists are warning of a recession in the early part of 2012 for the eurozone.  The UK economy is heavily reliant on the eurozone spending and therefore could have a set back from that situation.  The UK is also facing a possible second recession in early 2012.  The latest quantitative easing from the MPC had been an effort to keep a recession at bay. 

Despite the warnings of cheap remortgage deals being pulled there are still plenty of very low rates available.  Some lenders have not touched their cheapest offerings and they still remain available to homeowners that want to take advantage of a great remortgage deal.