Lenders advise remortgages are increasing in demand.

The number of home-owners comparing remortgages is on the up according to UK mortgage providers.

Remortgages are currently historically cheap and if you are prepared to shop around a competitive deal can be found. The remortgage market has experienced a change since last year. With the BOE base rate having remained at it's lowest ever level of 0.5 per cent for the last 3 years, most mortgage-holders felt safe with their product and developed mortgage apathy.

Predictions were for both the base rate and mortgage rates to remain at low levels in the future. While this remains to be the case of the base rate, mortgage-holders are slowly seeing rates rise.

Why are mortgage rates rising while the base rate remains low? Funding costs according to UK mortgage lenders. It is becoming more expensive to borrow money on the wholesale market. Lenders say they have absorbed increased costs for as long as they can but now costs have to be passed on to customers in the form of rate increases.

SVRs are increasing which has left mortgage holders not on BOE trackers or fixed rates panicking as to what will happen next.

Demand for remortgages is increasing as many try to switch before their lenders SVRs increase on May 01 this year. Increased demand often results in increased pressure on products and with a fixed amount of funding offered per product, the cheapest deals are often over subscribed soon after release.

If you are looking to compare the best remortgages on offer you are advised to act now. Secure a competitive new remortgage rate through Deal Direct while lenders cheap deals remain available.