The recent news of a banking scheme from the Bank of England to kick-start the economy by making sure cheap lending is available to UK families and small businesses is good news.  Homeowners have been having problems securing a remortgage due to the tightening in lending and rising interest rate on remortgage offers.  The new scheme comes just as things in the eurozone and global economy are worsening.

This weekend Greece has an election that may give power to the party that desires to leave the eurozone.  If they leave it will be very messy for banks and the global economy.  Other problems exist in the US, the largest economy, where recovery is faltering and China, the second largest economy, has an economy that is faltering as well.

In China the GDP is expected to fall and that will have implications across Asia.  Their manufacturing level has faded and home prices fell 18% in the first quarter of the year.  It is estimated that falling house prices and other economic problems could amount to Chinese banks seeing 65% to 100% non-performing loans in the coming years.

This information means that things are not likely to ease anytime soon and as predicted by experts the road to recovery is going to be long and bumpy.  All the more reason for borrowers, including homeowners, to be alert as to when to make a decision that will strengthen their financial health.  Lenders appear to be taking on a competitive mode and are offering remortgage deals with no application fees and other incentives such as free legal work and valuation.  As the banking scheme goes into effect interest rates may decline back to where they were a few weeks ago and homeowners should be ready to take advantage of the opportunities in remortgages available.