Remortgages are declining in demand as homeowners have found themselves with less fear of a rate increase by the Bank.  Yet, there is more than a rate increase that should have homeowners considering a remortgage.  Lenders could be lifting rates without a Bank increase, house prices are pulling equity down, lending is easing for groups other than those seeking a new house purchase or a remortgage.  Indeed, interest rate hike forecasts are not the only news that should grab the attention of homeowners.

Lenders use the base rate of the Bank to guide the rates that they offer to homeowners for remortgages.  One should never lose the fact that they are in fact a business, so a profit must be realized from the lending to borrowers.  Should swap rates or other factors come into play then rates will be increased before the rate of the Bank increases.  Homeowners should learn more about the types of remortgages available as well as the rates being offered.  In facing the possibilities of an interest hike those homeowners on their lender’s variable rate are risking much in their finances and putting money toward higher interest costs versus another debt or savings.

House prices are declining in most areas, taking with it equity that could be used in a remortgage.  Having remortgaged a year ago would have offered a higher rate of equity and better rates from lenders.  It is expected that house prices will continue to decline for the next five years.  It goes without saying that homeowners should be aware of the value of their own home and the properties in and around their surrounding areas.  If they plan on remortgaging in the near future, the equity in their home could disappear in the days ahead as prices incline, so a remortgage sooner than later would be needed.

Despite the forecasts calling for an interest rate hike sometime in August or as late as November, homeowners should not consider that months leading up to that time are good for sitting back and playing the waiting game.  There are many that could benefit from a remortgage with deals expected to get better due to a drop in demand.  Experts suggest forecasts should be watched closely and for those that can benefit, the closer the better.