Remortgage demand is growing as homeowners are taking advantage of the opportunities available with the current market. Growing house prices have given homeowners equity levels that are allowing them to free up cash through remortgaging. By doing so they are also securing their mortgage debt with low level interest rates that could disappear in the near future.

Homeowners seeking a cash release remortgage can use the money as they wish. Most likely they are using the cash to pay off debts, to pay for a family holiday, buying big ticket items, or refurbishing their home.

Much of the rush to remortgage is due to reports that the economy is doing well while house prices are due to stay aloft. In addition, there are warnings that the Bank of England will probably be increasing the standard base interest rate. Currently the rate sits at a historic low of 0.5% and has not changed since March 2009. The rate is expected to be increased in low increments and frequently to bring it closer to normal levels.

Those looking to remortgage should be aware that they may see higher interest rates associated with remortgage deals despite the Bank leaving their rate unchanged. That is due to the cost of funding for lending increasing. Lenders will be putting those increases onto customers, so that could another reason why homeowners are showing higher demand for remortgages now.

Experts warn that those seeking a remortgage should look beyond the interest rate offered and consider the deal as a whole to understand the true savings. Taking into consideration any fees or other costs along with interest rate savings will allow the homeowners to find the best deal for their situation.