Remortgage seeking homeowners will have an attractive array of deals to consider in the current competitive lending market.  Lenders are searching for the best borrowers and are keeping cheap offers available.  While there aren’t any new record breaking deals on the table from any of the lenders, the new below 3% rates replicate earlier ones offered that ended.  Not only are the deals carrying low interest rates but many are fixed rates with long 5 year terms. 

The competitive market should help those looking to remortgage or purchase a property do so at rates that will keep them safe from any rising interest rates in the next few years.  Despite the fact that the Bank of England’s Monetary Policy Committee (MPC) is not expected to adjust the standard base interest rate in the next 2 to 3 years, it is not a guarantee that lenders will not increase their rates if the global lending market remains weak.

The government’s scheme called Funding for Lending helped UK lenders escape the global lending market and offered funding for loans at much lower interest rates for lenders.  This allowed lenders to pass along the savings they gained in much lower interest rates for borrowers.  The impact of the new scheme has yet to be fully realized but it is expected that it will reveal a stronger demand for remortgages and mortgage lending in the coming weeks.

Homeowners are encouraged to revisit their consideration for a remortgage.  Those that have had their current mortgage deal end and have converted to their lender’s standard variable rate should definitely consider a new deal.  Rather than face possible increases in their SVR which has been the recent trend, a homeowner could secure a low interest rate deal from the newest offerings.