With interest rates at historic low levels, borrowing is cheap. So cheap in fact that it has been reported that some lenders are offering remortgage deals at less than 1%. It’s likely as close as we’ve seen to borrowing interest free. This is prompting homeowners to seek not only a remortgage with a lower interest rate to save money, but to borrow more with their deal. 

There is plenty of advice being passed around currently and most of it is gladly welcomed for those looking to borrow. The interest rates are astoundingly low and it would be quite difficult not to notice even if you weren’t planning to borrow. In some cases, the current low interest rate offers from lenders are their lowest ever in their history of lending. The most encouraged advice in borrowing could be that from experts encouraging homeowners not to lose out on savings by choosing to sit idle rather than remortgage.

The housing market has proven that people have changed their vision for a dream home. Before the pandemic most would have liked to buy a home in a major city for all of the opportunities and conveniences as well as culture, arts, and night life, but affording a home in those areas, especially in the capital would be difficult for most. However, the pandemic changed all of that with the country side getting more respect from home buyers and the city was shunned.

The housing market has exceeded expectations during the global pandemic. Most would have thought the market would slow down and perhaps ice over due to lack of activity. However, the pandemic itself caused a rush to the market. Having suffered through lockdowns, it caused renters and homeowners to convert to home buyers and home movers to obtain the pandemic lifestyle home of their dreams. It was made possible by low interest rates even though confidence in the economy was low.

The housing market keeps surprising and outperforming expectations and all of this during a global pandemic. The pandemic is in fact the main factor is spurring the housing market into its record breaking fury. Lockdowns caused people to examine not only their space, but their lifestyle. In turn, many sought out change which included homeownership versus renting, more space for working, studying, and being outdoors safely, and an escape from the city and into the countryside.

Remortgaging has been offering homeowners savings as well as the possibility to have cash in hand. The cash can be used for any need the homeowner has, but many have used it to invest back into the property for improvements and upgrades. Some of those improvements likely increased the value of the property. Not only has the equity cash release remortgage been popular with homeowners, but it is now growing in popularity with landlords.