Remortgage demand has surprised many experts in the mortgage lending industry.  There are cheap remortgages on the table for homeowners to choose from and there are lenders that are making it more difficult to live with a mortgage on a lender’s standard variable rate (SVR).  With lenders raising their SVR while lowering the interest rate on their remortgage offers it was thought that remortgage demand would sky rocket.

The lack of demand is being blamed on many factors.  Some homeowners are shut out of getting a new remortgage because they do not have enough equity built to get a new deal or they are in negative equity.  There are others that may not be aware of how much a remortgage could help them.  While there are many that are still sitting and waiting for a better offer especially as they see the cheapest rates being offered with 40% loan to value deals at below 3 per cent.

Waiting is always a risky choice when it comes to financial gain or possible loss. 

Many homeowners, it seems, are willing to wait out and see if interest rates are lowered by lenders since they are keen to offer cheaper deals for those with high equity.  However, it may do well to look at the fees that are with the cheapest deals.  Those deals may have mind boggling interest rates but the accompanying fees over or close to £1,000 make them less affordable than some of the remortgage deals that are offered with slightly higher interest rates.  As always and especially in the current economy it is important to take into account a whole remortgage deal versus the interest rate part of the deal.

Shopping around for a remortgage doesn’t mean you have to commit but it could be worth the effort to see what is available and how much it might make a difference in your mortgage debt repayments.