In the past financial quarter, and perhaps a few months more, mortgage demand has remained low sparking a competitive environment for lenders. To attract borrowers, loans have been offered with record low interest rates in many cases. The more demand remained weak the more lenders fought for the attention of those seeking to buy a new home or remortgage.

Meanwhile, the noise concerning a possible interest rate increase by the Bank of England has quieted. This, along with the low interest rates currently offered by lenders has led many home owners to sit quietly and become relaxed in their current lending state. Even if their current mortgage deal has ended and they are on their lender’s risky standard variable rate (SVR), they seem in no hurry to get a new deal.

It may be time to sit up and consider the changes taking shape that will impact the current offers now to be found from lenders. If not, a homeowner, home mover, or hopeful home buyer could miss out.

Lenders, especially large banks and building societies, are due to tighten their lending practices. Also, consumer confidence has reached the highest level in almost 13 years according to a survey by consumer research group GfK. Higher consumer confidence coupled with new programmes meant to draw first time buyers back to the housing market will no doubt shift the current competitiveness amoung lenders.

The cheap remortgage and mortgage loans will begin to be pulled and replaced with higher interest rates. This will likely occur before the Bank of England makes any change to the current standard base interest rate.

Because remortgage and mortgage processing takes longer than before due to financial regulations implemented last year, for those seriously considering a new deal, it would be wise to watch closely at the shifting of the current state in lending. To get the best deals, the low cheap rates that are so attractive, it will mean having to shop around soon.