UK Lenders in Constant Competition with Updated Remortgage Products
The state of the UK lending market is fragile. While high street banks attempt to adhere to a code passed down by the government to maintain proper surplus levels, they still must participate in the practice of lending. After all, the practice of lending is why they are in existence. Banks are saving houses, but the only way they make money other than standard fees, is charging interest on original mortgage loans and remortgage loans. For the everyday homeowner, this is a great time to approach a remortgage specialist and get into a conversation about the possibility of a remortgage.
UK lenders are in a total state of creativity when it comes to remortgage products. The Bank of England base rate is in a temporary state of pause mode and few economists know when the pause mode will be history so the economy can move forward. The hike in the base rate became even more of a mystery recently with the move by the UK government to inject a second round of Quantitative Easing. This means that a hike in the base rate at this time would be economic suicide. Some economists are even talking about the possibility of a third round of QE.
As a homeowner, now is the perfect time to keep a close eye not only on the short term and long term effects of the QE, but what economists are predicting about the base rate. For remortgage products, lenders are only going to keep competing hard for new loans. That means the benefits will continue to lie with homeowners for now.