Remortgage deals are coming up everywhere as lenders are becoming more competitive to bring homeowners in to grab a low interest rate remortgage.  Without the warnings from economists that an interest rate increase is looming in the near future, homeowners are content to sit where they are on their current mortgage and perhaps even their lender’s variable rate.  Some forecasts are calling for the first interest rate to occur in 2012 and that is causing homeowners to become comfortable in their current situation.

Yet homeowners should consider that as time goes on they may find it more difficult to remortgage, especially if they are having budget problems.  If so, then the time to remortgage is now while the best remortgage rates are available.  Once the time does come for the Bank to increase the rates then there is likely to be a rather significant increase to counterbalance the long postponement that has occurred due to the weak economic growth. 

Jonathan Cornell of mortgage brokers First Action Finance remarked, "The dilemma of whether to remortgage now or later is a tough one.  On one hand there are now some excellent rates; on the other it doesn't look like we will see a base rate increase in 2011. If you suspect there is some reason why it will be harder for you to get a mortgage down the line, a job change for instance, it is probably a good idea to remortgage sooner rather than later. There is also the danger if you wait until the rate rises start that the rate you will secure for your remortgage will a lot higher than it is now."