Remortgaging should continue to be a consideration for homeowners despite the latest forecasts from economists concerning the standard base interest rate set by the Bank of England.  The Bank of England’s Monetary Policy Committee, which sets the standard base interest rate, has left it at a low 0.5 per cent for over two years and experts see little chance of there being an increase before the end of 2011 and possibly even through 2012.  Without the fear of an interest rate increase, most homeowners see little need to seek out a remortgage.

Many homeowners are finding it possible to meet their mortgage repayments despite having ended their mortgage deal and paying interest based on their lender’s variable rate.  It is true that the lender’s variable rate is probably low and affordable right now but there is great risk involved to most homeowners to wait.  A lender can at their own discretion choose to change their variable rate, either due to an increase in swap rates which are the rates lenders charge one another for lending, or due to other economic or financial influences.  In other words, it doesn’t take a move by the MPC for a lender’s variable rate to increase.  This risky interest rate is not the best choice for a homeowner on a fixed budget.

Besides the risk involved in staying on a lender’s variable rate after a mortgage deal has ended, there are other reasons to remortgage now.  One is that there are excellent deals to be found from lenders who are seeking out customers as demand has fallen.  Some deals are at unseen interest rate levels and include incentives such as free valuations and legal work.  Another reason to remortgage now is because forecasts are not always right.  They are simply a guess at what could happen with no changes to the scenario.  Yet, things are always changing in this economy as other global events and economies cause influence.  Just because there are low rates now does not mean they will be there in a few months or next year.  If a homeowner could benefit from the security of a less risky loan type, a low interest rate, and a few free incentives to boot then a remortgage should definitely be a serious consideration.