The homeowner that is on the fence about whether to remortgage now or wait needs only look around at to what is happening to the interest rates being offered from lenders on remortgage deals.  Despite expectations that the Bank of England’s Monetary Policy Committee (MPC) will not be increasing the standard base interest rate from 0.5 per cent homeowners must still expect higher interest rate offerings.  Lenders have been cautious as of late and have been tightening up their lending criteria.  This cautious environment in lending due to the weak economy as well as the higher cost in lending to borrowers is pushing interest rates upward on remortgage deal offerings.

Many lenders have given notice that they are going to be increasing their standard variable rate (SVR) while at the same time cheap remortgage deals are being pulled from the market and replaced with higher interest rates.  This trend is expected to continue and homeowners are urged to consider the low rates available now or to be prepared to see them change in a matter of weeks.

The most recent lender to give notice of increased SVR levels is the Co-op Bank.  They will raise their rate by 0.5 per cent to 4.74 per cent from May 1.  Halifax, RBS, Clydesdale and Yorkshire have all given notice to their customers that increases will be coming.

Unfortunately the higher loan to value levels that were being seen are now contracting.  This too will make it more difficult to remortgage.  Many homeowners have lost significant levels of equity and without a cash deposit to add to their equity level a remortgage will be out of their grasp.