Economic risk continues to be high due to continued problems in the eurozone.  This could impact the remortgage deals that are made available to homeowners should the problem worsen.  The G20 nations met in Mexico and the discussion of the problems in the eurozone were a main topic.  Just days ago a bailout plan had been designed for Greece that was in a very real economic tragedy. 

Should the problems in the eurozone heighten then there will be a cautious tone undertaken by lenders.  As lenders see borrowing with more risk then there will be higher interest rates associated with remortgage deals and other types of borrowing.  The higher interest rate offers will occur even if the Bank of England’s Monetary Policy Committee leaves the standard base interest rate unchanged.

The problems in the eurozone if they worsen could cause further damage to global economic growth.  One problem would be damage to Asian markets which are very dependent on exports to the eurozone.  Should problems continue and goods exported by these economies reduce then even those economies that are seeing some stability will be hurt.  For those economies such as the British economy there could be problems in the banking, manufacturing, housing, retail, and other industries.

A joint statement from G20 financial ministers said "The international economic environment has continued to be characterized by an uneven performance, with weak growth in advanced economies and a stronger, albeit slowing, expansion in emerging markets."

A cautious tone had already taken hold of lenders due to economic problems in the eurozone at the end of 2011.  This led to many lenders pulling their best remortgage deals from the market.  Homeowners hoping to remortgage will find very cheap deals still on the table from lenders but should problems escalate in the eurozone that could all change.