Lenders best remortgage rates could last for another 5 years, but that is only half the story!
Home owners could continue to benefit from lenders best remortgage rates for a further five years because of exceptionally low interest rates, however that might only be half the story.
The base rate is being kept low by the Bank of England and this is to aid growth and regulate inflation. However many opposing this strategy believe that if it fails we could see higher unemployment, a further housing market slump and even tighter rules to lending.
All in all that could be a recipe for disaster for a family with a mortgage on a standard variable rate. This hypothetical family could find their bills going through the roof and face the possibility of their income drastically reducing as they are caught by rising unemployment. To top that off they could find it impossible to then remortgage to get on to one of the great mortgage deals being offered.
Right now cheap loans and the best remortgage rates could give home-owners a financial boost for potentially another five years. A clever strategy in such worrying times could be to lock in to a good fixed rate and cover off the threat of inflation or tighter lending criteria that could trap millions on to a standard variable rate.
The Governor of the Bank of England, Sir Mervyn King indicated that the BOE base rate will most likely remain at the historic low level of 0.5 per cent until 2014. Some experts have however gone further, predicting that the 0.5 per cent low base rate could last up to three years after that.
Extremely low interest rates have enabled mortgage lenders to offer their cheapest ever deals to borrowers. The best remortgage rates could therefore be set to last for a while longer, but mortgage lending criteria will most likely get tougher throughout the year because of the weak economy.
Unfortunately some potential borrowers who hang on too long for the right deal 'could' miss the opportunity, for a new mortgage or a re-mortgage, altogether!
