Remortgage offerings have changed in recent weeks due to the more cautious outlook by lenders.  The problems in the eurozone caused many lenders to fear lending to have an added risk.  Due to this added risk the lenders pulled their cheapest remortgage deals. 

In an attempt to ward off another recession the Bank of England’s Monetary Policy Committee (MPC) approved another round of quantitative easing (QE) in the last quarter of 2011.  The QE helped lenders stay optimistic but still many pulled their best deals.  There is a strong indication that another round will be approved in the month of February by the MPC.

Vicky Redwood, chief UK economist at Capital Economics, believes the economy is still being impacted by the most recent QE increase.  She remarked, “However, next month should see the Committee announce a further round of QE, which we think will take it further towards eventually increasing the programme to some £500bn.

“Accordingly, we think that the MPC will take more action in February. By then, the current asset purchases will be completed, the Committee will have compiled its new forecasts for February’s Inflation Report and it will have the first estimate of Q4 GDP to look at.

“The consensus forecast is also for more QE in February, although forecasters are split between anticipating £50bn and £75bn. We think that £75bn is more likely as this would come closer to continuing the current rate of asset purchases.”

Remortgage deals may not be as cheap as they were a few weeks ago but they are still very good deals that can offer a low interest rate for homeowners.  For homeowners that are in need of a low interest rate they should consider one of the still cheap remortgage offerings available now.