Best remortgage rates are predicted to disappear in 2012

It is likely that 2012 will see the best remortgage rates disappear. Home owners who have been considering a remortgage may need to hurry up and choose a low interest rate deal now. By waiting, home owners could miss out on considerable savings.

Signs are growing that 2012 will see the UK economy head into a second recession. Lenders are likely to set aside their competitive deals and become much more cautious. The best remortgage rates available today may not be around for much longer.

The Bank of England is not expected to raise the standard base interest rate, however this does not mean lenders will continue with their rock bottom interest rate offers. The prediction is that home owners are not likely to see such low rates again, and those who wait to long will miss out on the best remortgage rates.

In the second quarter of 2011, the Organization for Economic Co-operation and Development (OECD) forecast that the UK economy would grow by 1.8 per cent in 2012. Since this earlier prediction they have downgraded the forecast to 0.5 per cent. The OECD believe that public spending cuts, the squeeze on household incomes, a lack of international business for exporters, and unemployment will take a toll on any possible growth.

Experts predict that remortgage deals will not remain cheap in the weeks and months ahead and recommend owners look around now. Crisis in the eurozone and the lack of growth in the UK economy will lead lenders to remove their best remortgage rates and mortgage deals.