Remortgages could be slipping out of the fingers of homeowners that could use the benefit of a new deal.  Homeowners that have had their mortgage deal end and are now paying on their lender’s variable rate are going to be surprised very soon.  Despite the fact that the Bank of England’s Monetary Policy Committee (MPC) will likely leave the standard base interest rate at a low 0.5 per cent, lenders will be increasing their own rates. 

The lender’s variable rate is independent of the MPC and they can raise and lower it when they want.  Because of this, homeowners can see a rise and fall on the lender’s variable rate without warning and their payments will fluctuate.  It is when the rates rise that homeowners that have been paying a low rate will be pushed to shop for a remortgage deal.  The reason that rates will be rising is that lenders are becoming more cautious.  The problems with the eurozone and the UK economy are causing a more cautious outlook and this will push lenders to raise their rates.

Once the rates rise homeowners are going to be shocked to find that not only was the lender’s variable rate a risky situation for them but that now they are ready to move to a remortgage the best deals are gone.  Not only will lenders raise their own rate but the remortgage offers will be raised also.  The cheap remortgage rates of a few weeks ago are already gone.  While remortgages are still attractive a homeowner should secure a low rate before they are surprised by their lender’s rate.