Homeowners that are looking for a remortgage in the near future have their eyes fixed on forecasts about the next interest rate rise as well as the declining house prices.  They want to make sure they secure a low interest rate remortgage deal before the interest rate is hiked upward by the Bank of England.  They also want to secure that remortgage deal before they lose more equity and thus lose the opportunity for the best rate.

In the June meeting the Bank’s rate regulators left the interest rate unchanged for the 27^th month at 0.5 per cent.  Borrowing is at a historic low but many homeowners are finding it hard to remortgage.  This is due to the falling equity levels, with some homeowners that purchased only a few years back finding their mortgages in negative equity.

When house prices will recover is unknown and experts are finding it hard to predict the housing market right now.  According to the Centre for Economics and Business Research estimates that by 2015 the house price average will rise 16 per cent by 2015.  They believe this will occur when lending begins to loosen its tight grip that has been holding buyers back and there will be a small supply of housing available to those buyers.  There are others that believe there are only more declines in house prices expected for the next few years.

Despite the falling house prices, sellers are coming to the market and are overpricing their properties.  This leaves properties on the market longer; sellers get anxious and take huge cuts in their asking prices to be competitive.  While it helps the buyer out who gets a great deal, the falling house prices are making many avoid selling right now.  It also is costing homeowners in areas where prices are falling to lose valuable equity.