Remortgage deals are not going to remain cheap in the weeks and months ahead according to experts.  The crisis in the eurozone and the lack of growth in the UK economy will push lenders to pull their best remortgage and mortgage deals and replace them with higher rates.  For homeowners that have waited thinking that cheap remortgage had become the norm they will have missed out on considerable savings. 

Ray Boulger, with John Charcol, said there have been increases seen already in new tracker and short term fixed rate deals in the last few months.  He added “These increases so far have not been large enough to negatively impact on the intention of those intending to buy a property and, of course, mortgages are still cheap by historical standards.

"However, that could very easily change early in the New Year. EU politicians have been good at talking the talk on solving the crisis caused by the fundamentally flawed euro experiment, but pathetic when it comes to walking the walk. As the crisis has escalated, EU politicians have simply managed to prove how incompetent they are as they continually get further and further behind the curve.”

In regards to the need for lenders to reduce their lending levels Mr. Boulger remarked, “The cost of those funds they can obtain will increase even further and this, plus reduced competition, will result in further increases in rates for new mortgages. Even worse, the lack of funds available to lend will mean the recent improvement in the availability of higher loan-to-value mortgages will go into reverse."