Interest rates offered on remortgage deals by lenders are likely to see many changes in the months ahead.  There are many influences that will be pushing lenders to make the changes and none of those will be the Bank of England’s Monetary Policy Committee (MPC).  The MPC left the standard base interest rate unchanged again in their May meeting.  Experts believe the rate will remain at 0.5 per cent for the rest of the year.

Usually it is the warnings that the MPC will be increasing the interest rate that put homeowners on alert to consider a remortgage.  The MPC has nothing to do with the warnings being issued about interest rates and mortgage lending currently. 

Lenders have taken on a cautious viewpoint on the current economic situation.  That has led some to raise their standard variable rate (SVR) and to change the interest rates on remortgage offerings.  Those homeowners that did not remortgage when their current mortgage deal ended and were converted to their lender’s SVR are facing increases in their monthly repayments or have a threat of having to do so.  In looking for a remortgage a homeowner will find that lenders are pulling their cheapest remortgage deals and changing the interest rates to slightly higher levels.

Not only is the economic outlook having an impact but lenders are paying more in lending costs.  They are sharing these increases in the expense of doing business with current customers and new borrowers.  Little is expected to change in the coming months and homeowners that are considering a remortgage may want to get a remortgage sooner rather than later with the current influences on lenders and their interest rates.