Remortgage hopeful homeowners may soon see a different lending environment. The Monetary Policy Committee (MPC) members voted 3 to 6 last month in their meeting to increase the interest rate. The range of the desired interest rate increases were from 0.25 per cent to as much as increasing the rate by double with a hike of 0.5 per cent. Next week will be the monthly MPC meeting and analysts are varied in their opinion in what could occur. Should an increase happen for the first time in two years the lending market will definitely be a different place for remortgaging than in months past.

For that reason many analysts and remortgage experts are urging that a remortgage seeking homeowner should heed their advice to shop now. The lending market is changing rapidly when it comes to remortgage products. In the end of December there were many great deals on fixed rates. As demand grew and swap rates increased for lenders those deals were pulled from the market.

In the weeks that followed more and more remortgage deals were pulled. The average price of the interest rate offered on fixed rate remortgages grew. Homeowners were finding that what was available only weeks before could not be found any longer.

It is expected that the demand on remortgages will continue and should there be a close vote by the MPC or even an increase in the rate that lenders will react. There will be likely be a further squeeze on lending as they require higher deposits and enact tighter lending criteria to hopefully avoid lending to homeowners that will not be able to repay the loan. So with changes on the horizon it would do well for remortgage hopefuls to consider now as the time to make a definite decision to shop for a deal while they are available.