Remortgage demand as well as remortgage lending approvals could see an impact by the recent news that the GDP for the UK slipped in the final quarter of 2011.  Economists seem to be optimistic that the recessional trend will be short lived and that growth will return to the economy quickly.  This will be good news for homeowners that are in need of a remortgage.  Cautious lenders do not offer the best remortgage deals nor do they easily give out approvals when there appears to be a lot of risk in lending.

In response to the news of negative growth in the economy Blerina Uruci with Barclays Capital remarked, “While these figures reveal significant weakness in the economy, we do not think they mark the start of an inexorable slide into a severe recession. … First, the weakness came mainly from industrial production and construction output, which are very volatile, and we might expect to see some of this weakness unwound in Q1. Second, survey indicators suggest that the latest spell of weakness in the economy has troughed and we should expect growth to slowly improve from here.”

Philip Shaw from Investec said “We still believe that output is likely to decline in the first quarter, which would mean that the U.K. has re-entered a technical recession. However a number of the short-term surveys have improved over the past month or two in the U.K. and over-seas, and it is possible that the domestic economy is a touch more resilient than we are forecasting.”

Remortgages are still attractive and as long as optimism reigns among lenders they will remain so.  Homeowners that have yet to remortgage would do well to stay abreast of forecasts on the economy.  Optimistic lenders offer better remortgage deals than those that are worried about the risk in lending in hard economic times.  Remortgage deals are still cheap and lenders are ready to make a deal so the time to get a great remortgage deal may be now while the economic outlook is good.