The reason homeowners are seeing changes in the remortgage deals offered is that lenders are paying close attention to the situation in the eurozone and the US.  As things get unstable in those economies it makes lenders become more cautious and the better remortgage deals are being pulled.  For those that thought the best remortgage deals would remain unless the Bank of England’s Monetary Policy Committee (MPC) hiked up the interest rate the absence of the deal they looked at a few weeks ago has sent some homeowners into a state of surprise.

The MPC is not the only variable that could take away the better remortgage deals that have been showing up over the last few weeks.  The MPC has not made a single move all year long and they have left the standard base interest rate untouched at its 0.5 per cent rate.  Yet, remortgage deals have fluctuated in the offerings available over the year.  This is due to the lenders’ decisions despite the rate remaining unchanged by the Bank.

Swap rates rose in late spring and that caused rates to change and the best offers to be pulled off the table by some lenders.  Swap rates are the costs involved when lenders choose to borrow from one another.  The cost in borrowing through swap rates is put on the consumer and this can cause rates to either rise or fall according to whether swap rates are increasing or decreasing.  Lenders can also get cautious when things in the economy become unstable such as the current situation in the eurozone.  Just a few weeks ago the tensions in the eurozone caused some lenders to increase the interest rates on their tracker remortgage offers.  Since there are more variables than the MPC that can cause a remortgage deal to end, it makes sense to grab a remortgage deal now if a homeowner is considering one.  The deals available currently could quickly disappear and no one wants to be surprised by higher interest rates and face that they missed out on considerable savings, at least not in this economy.