Cheap remortgages can be found on the market and homeowners have been in strong demand to find them.  However, the wind of change is blowing and historically low interest rate remortgages could disappear by the end of the year as forecasters anticipate the Bank of England’s Monetary Policy Committee to increase the standard base rate by the end of the year.  The current rate of 0.5% has been steady since March 2009 due to the financial crisis and long recession.

The strong demand for housing has been fueled by low interest rate mortgages and growing consumer confidence.  Critics worry the Help to Buy scheme could push house prices to new heights and make waves for the growing economy.  To avoid any splashing that would slow down or drown any improvement to the economy, Mark Carney is expected to take action in slowing down the mortgage lending and the housing market. 

The Financial Policy Committee (FPC), chaired by Mark Carney, could introduce measures meant to cool off the market by introducing new affordability tests for borrowers and limits to the ratios allowed for mortgage approvals in the amount able to be borrowed in relation to the borrower’s earnings.  These changes would support the already new guidelines introduced in April to keep responsible borrowing in place through the Mortgage Market Review. 

The Help to Buy scheme could see changes as well since it is a strong force in putting cash strapped buyers into homes with low deposits.  While there have been critics of Help to Buy, it has helped bring back first time buyers to the housing market.

Homeowners should stay abreast of the changes and be prepared to act fast to gain one of the cheap remortgages on the market as the process is lengthier than it used to be and switching will not be as quick and as automatic as in the past.