Remortgage rates have been changing and homeowners that have not yet remortgaged are going to miss the cheapest rates.  The threat of a second recession is causing a more cautious tone among lenders and therefore they are pulling their cheapest remortgage deals among other lending deals.  The Bank of England’s Monetary Policy Committee (MPC) is expected to release more quantitative easing to ward off a second recession.  Experts want them to act soon and not put off more QE too long, including the British Chambers of Commerce.

In a response to the minutes from the December meeting of the MPC, David Kern, Chief Economist with the British Chambers of Commerce said, “As expected, the minutes from the latest meeting of the Monetary Policy Committee (MPC) show that it voted unanimously to maintain interest rates at 0.5% and the Quantitative Easing (QE) program at £275bn. The committee is right to highlight that the major problems facing the eurozone pose a significant threat to the UK. While we have not yet seen these risks crystallize, concerns that the situation will worsen are affecting the ability of banks to fund themselves smoothly.

“Given the risks facing the economy in the near future, with minimal growth set to continue and unemployment likely to increase, the MPC should expand QE by a further £50bn early in 2012. Increasing QE would help to sustain demand in the economy, and keep the exchange rate at a competitive level. However, the impact of more QE would be enhanced significantly if the government swiftly implements the credit easing program, improving the flow of lending to viable businesses.”

Remortgage rates will be impacted by what occurs with the QE and the threats of another recession.  With a lowering of the threats there could well be another competitive environment developing between lenders to bring back borrowers.  This would mean better remortgage rates appearing once again.