Homeowners that are expecting to remortgage in the coming months should stay alert as to the forecasts and happenings in the economic recovery.  The best remortgage deals started being pulled by many lenders when a more cautious outlook was being adopted by lenders at the end of the year.  As the warnings increased that there might be a second recession lenders became more nervous about lending.  That was in the face of warnings not an actual recession.  If the recession does occur then homeowners may see lenders growing even more cautious and the remortgage deal offerings will reflect it.

According to a recent report from the Institute of Chartered Accountants in England and Wales (ICAEW) businesses are reflecting a more cautious outlook just as lenders are doing.  They are cutting back on capital investments as well as job creation for the coming year. 

Michael Izza, chief executive of ICAEW, remarked “Businesses are responding to concerns about the economic outlook by cutting back on investment in equipment and people. This is at a time when Government desperately needs businesses to be growing.

“At the moment, it is hard to see where this growth will come from and the Chancellor needs to use the forthcoming budget to give businesses reasons to be more confident about the future – and unlock potential investments.”

Lenders and now businesses are becoming more cautious in the wake of a possible second recession.  Homeowners will likely see the more cautious outlook on the economy be reflected in the remortgage offerings available in the coming weeks and months.  While deals are readily available and interest rates from lenders are low it may do well to consider a remortgage sooner than later when lending will become tighter in the face of more perceived risk from lenders.