Since the beginning of the year inflation has sat at more than double the goal set by the Bank of England which is 2.0 per cent.  The current level of inflation is 4.5 per cent and experts believe it could reach 5.0 per cent by the end of the year.  The price of almost everything has gone upwards and there are few deals to be found.  Consumers have had to watch as their spending power has diminished.  Yet, there is one area where the cost has dropped and that is the cost of borrowing.  Interest rates, especially for remortgages, have been cut to levels that haven’t been offered in decades in some cases.

According to the latest figures from the Council of Mortgage Lenders (CML), in the month of August the number of remortgages rose by more than 30 per cent when compared with the month of August last year.  This means that homeowners have been grabbing the great remortgage deals available even without a threat of the Bank’s Monetary Policy Committee changing the interest rate.  The data from the CML showed that there were 34,100 remortgages obtained in August.

While the number of remortgages increased in August by no meager amount, the numbers are actually surprisingly low.  There are literally millions of homeowners that could benefit from a remortgage and this is especially so for those homeowners that had their mortgage deal end.  For those homeowners who have moved onto their lender’s variable rate, this could be the perfect time to grab a low rate remortgage.  The deals are great now, interest rates are low, loan to value levels are rising, and there is no guarantee that the cost of borrowing won’t soon rise just like most everything else.