Remortgage deals offered from lenders are currently cheap but not as cheap as they may have been had lenders remained competitive rather than cautious.  The third quarter of 2011 saw a change in the outlook of lenders.  As demand had declined for remortgages lenders became competitive for business from homeowners.  The result was very cheap remortgage deals with attractive incentives offered as well. 

During the competitive environment created by lenders there were plenty of remortgage deal offerings on the market.  Incentives included cash offerings at closing, free legal work, and free evaluations.  The offerings dropped so low that many fixed rate deals were in line with remortgage trackers.  Homeowners were willing to come in and take advantage of the offerings and remortgage demand increased.

However the final quarter of last year saw the competitive outlook take on a more cautious tone.  The threats of a double dip recession and the problems in the eurozone made lenders nervous about lending.  The best remortgage deals were replaced with slightly higher interest rate offerings.  Some remortgage deals were pulled and not replaced which left fewer remortgage products on the market for homeowners to choose from.  That cautious tone continues and there is likely to be even higher offerings replacing the cheap deals available today. 

The Bank of England rate regulators are not expected to raise the interest rate at all in the months closing to the end of the year.  This does not however mean the best remortgage deals will be available in the weeks or months to come.  Homeowners that are looking to remortgage should be aware that remortgage deals are at risk of a rate increase not from the Bank of England but rather from lenders.