Remortgage rates are expected to fluctuate in 2012
Due to current economic conditions, remortgage rates offered by lenders are expected to fluctuate in 2012. The year will likely see ups and downs in the rates of remortgage deals offered by lenders. The first half of 2012 looks to be a good time to find a cheap deal as remortgage rates remain low however, home-owners are being advised to act quickly before the cheapest remortgage rates are gone.
The Royal Institution of Chartered Surveyors believe home prices will continue to marginally slide early in the new year, which is good news for anyone still interested in moving home. However it is not such good news for savers and remortgagers who looking to build equity in their home.
Simon Rubinsohn, RICS primary economist, commented on the factors that are most likely to affect the housing market, saying: “The general economic climate is likely to be the biggest influence on the residential property market. Prices could edge a little lower as unemployment continues to rise. However, the lack of supply in the market is likely to prevent any significant house-price declines.”
There are however many events that should help consumer optimism and positively influence consumer spending habits and the economy this year. The Queen’s Jubilee and the Olympics are due to have a major impact and if borrowers become more optimistic then there will be more demand for borrowing. Increase in the demand for borrowing should result in lenders becoming more competitive, leading to better remortgage rates.
