Remortgages are usually considered when one is trying to avoid facing a higher interest rate.  Demand for remortgages soars when there are economist’s warnings of an upcoming hike in interest rates.  However, there are needs for remortgages currently for reasons other than due to warnings that the Bank of England’s Monetary Policy Committee (MPC) will be hiking the interest rate.

Some lenders recently gave notice that they would be raising their standard variable rates (SVR).  Those homeowners that have had their current mortgage deals end and have converted over to their lender’s SVR will see an increase.  The lenders that have chosen to let their SVR remain unchanged may not leave it that way for much longer.  The cost of lending has increased and that cost is not going to be wholly absorbed by lenders for long.  Those homeowners that will be impacted by rising SVR levels have been advised to consider a remortgage to avoid rising SVR levels.

Many homeowners have found their budgets stretched far too thin as they endure rising fuel and food costs.  Homeowners with sufficient equity and a need to increase their cash flow have chosen cheap remortgages to release equity for money.  This money can then be used to pay down debt, consolidate debt, pay for expensive needs, or to put aside for emergency situations while still providing the homeowner with a low interest rate.

Cheap remortgages are still widely available and fixed remortgages remain attractive for homeowners seeking a new deal to offer them a low interest rate, cash release from equity, or safety from rising SVR levels.