Homeowners that are nearing the end of their current mortgage deal and those that have already ended their term and have reverted to their lender’s standard variable rate (SVR) are being encouraged to consider a remortgage. Interest rates are at all-time lows, fees associated with remortgages are declining, and property values have risen offering higher equity levels on properties. Homeowners that wait could miss out on the cheap deals currently offered.

The reason that current interest rates offered by lenders are so cheap is due to the low demand over the previous two quarters for remortgages. Homeowners have been sitting on the fence waiting to take action to get a new deal and why not with low SVRs and warnings quiet concerning the Bank of England’s Monetary Policy Committee’s determination to change the historical low standard base rate.

However, the trend of lenders being competitive and fighting to get the attention of borrowers with record low interest rate deals could be coming to an end. Many factors are coming together that could cause lenders to step out of their competitive lending habits and start to increase their lending rates. A few of those being that first time buyers are due to return to the housing market which will increase mortgage lending demand and also continued increased growth in the UK economy.

Homeowners should take advantage of the opportunities that are now available and at the very least spend some valuable time exploring how a remortgage deal could impact their household budget with a savings in mortgage repayments.