Best remortgage deals to remain cheap
Home-owners will continue to benefit from lenders best remortgage deals, which have remained cheap due to the Bank of England leaving the standard base rate at 0.5 per cent.
There were warnings in 2011 that an increase in the rate of inflation was likely to happen to a level that would be overly damaging, and it was felt a hike in interest rates was needed. However many MPC members were assured that because borrowing needed to stay cheap to support the struggling economy, the rate of inflation would take care of itself given enough time. The most recent inflation rate came in for December 2011 at 4.2 per cent which is down from 4.8 per cent and the RPI, which is the other measurement of inflation, fell to 4.8 per cent from 5.2 per cent.
Warnings of an increase in interest rates have died down and the Bank of England has predicted that inflation will fall down to the goal level of 2.0 per cent by the end of the year. In light of the figures experts have forecast that lenders best remortgage deals will remain cheap for homeowners. As the MPC is not expected to raise the standard base interest throughout 2012, remortgaging should remain cheap for now.
While the best remortgage deals remain cheap for the time being experts advise that cheap deals should not be considered the 'norm'. Home-owners are who are on fixed deals that are about to end, are advised to shop around for a good remortgage deal to avoid switching to lenders SVRs.
