The competition for the attention of borrowers has gotten more interesting. The current standard base interest rate set by the Bank of England’s Monetary Policy Committee (MPC) is at 5.25%. It would be expected that lenders offerings should come in deals above the base rate, but recently remortgage offers have fallen below the Bank’s base rate and that could create a rush to remortgage by homeowners that could benefit. 

According to recent reports there are more than 25 lenders offering mortgage deals below the base rate. There are fewer offering the same deals in remortgages, which signals where the competitive deals remain and that is with home buyers who have backed away from the housing market due to higher interest rates. However, there are lenders looking to convince homeowners to switch their loyalty and come aboard with their attractive remortgage deals.

While there are less than a hand’s count of remortgage lenders with offers below 5%, they can be found and in two-year fixed rates. This is the first time since the middle of the year that such deals have been offered. 

It should be noted that the best remortgage deals are often reserved for those with a very good credit history and loan to value levels of 80% or less. This should not deter homeowners from shopping for a new deal no matter their personal financial circumstances. 

It is so easy to shop online for a remortgage that it can be done in a matter of minutes. Shopping the website of a remortgage broker could put remortgage quotes from a variety of lenders into the homeowner’s hands to review and compare in moments. Homeowners could also shop from website to website of remortgage lenders to gather quotes, but due to the opportunity to discover an exclusive deal from a lender through a broker, it might be a smart strategy to begin the remortgage shopping process with a remortgage broker. 

Much of the competitive environment that exists currently is due to the more positive outlook of the MPC taming inflation. It dropped from 6.7% to 4.6% in October. The major decline is seen as a sign that perhaps the economic pressures are soon to be a part of our past. However, there are factors that could hinder this progress and cause lenders to tighten up borrowing once more and pull their currently cheap deals. 

Some experts believe the drop in inflation is not due solely to the MPC efforts but triggered by the cost caps on energy suppliers. There is also the continued global unrest due to the wars in Ukraine and Gaza. Such issues could put pressure on global lending and impact domestic lending decisions.

This is all the more reason for homeowners to take advantage of what exists now. There are competitive deals to be found, perhaps not the historically cheap deals of 2021 or even the still cheap deals of 2022. Two-year fixed mortgage terms found then have either ended or will soon and homeowners will be facing the choice to remortgage or allow their lender to transition them to their standard variable rate (SVR). 

Some SVR rates are above 8.0%. Remortgages are not only being offered at a lower and therefore cheaper rate, but also offering the ability to lock in the rate with a fixed rate deal. This makes remortgaging the smarter strategy for those seeking to gain not only savings, but peace of mind as the global economy teeters on the edge and the domestic economy faces its own struggles.

The opportunity to get a lower deal through remortgaging versus a SVR at the end of one’s mortgage term should not be overlooked. 

Rachel Springall, finance expert with Moneyfacts remarked, “It's encouraging to see cheaper mortgages on the market for borrowers, particularly the return of two-year fixed mortgages priced below 5%.

“This is great news for those who do not want to commit to a longer-term fixed deal. Several large lenders have slashed fixed mortgage rates and there is much anticipation for more cuts in the coming weeks.

“It's a promising market for consumers looking for a new deal.”

The lowest remortgage offers currently available have been found at 4.59%, and again that is for the ideal remortgaging customer, but it doesn’t mean that lenders aren’t willing to offer attractive deals for even the most complicated of remortgage needs. To discover what is available, one simply has to remortgage shop online, and do a quick and easy gathering of quotes through a remortgage broker and maybe discover an exclusive deal while they are at it.