Some of the first reports on the state of the UK housing market have been released and as expected the demand for property remains high. Much of the strong demand is due to rising interest rates and the attempt of buyers to purchase now before borrowing becomes more expensive. According to Nationwide, the average house price grew in 12 months to March by 14.3% or £33,000. The rate of growth in March was the fastest since 2004.

In the wake of two interest rate increases by the Bank of England’s Monetary Policy Committee (MPC) in December and February, hopeful home buyers rushed to shop and buy. According to a recent report by Zoopla, the UK house price increased by 8.1% in the twelve months to February. In comparison to February 2021, there was a 4.2% increase. The increase is impressive, but was slightly lower than the increase in January which was 8.4%.

Homeowners are shopping for remortgages according to experts. No wonder due to the many benefits a remortgage could offer a household while the economy is dealing with an ongoing global pandemic, a war in Ukraine, inflation at levels not seen in four decades, and rising interest rates. According to the LMS Monthly Remortgage Snapshot remortgages increased in February by 51%,

Homeowners are seeking remortgages. The opportunity to save money, to turn built up equity into cash, and the ability to lock in a long term deal to protect against rising interest rates are all reasons as to why a homeowner might desire a remortgage. Due to the Bank of England’s Monetary Policy Committee (MPC) having hiked the standard base interest rate at each of the last three meetings, it is not surprising that demand for remortgaging has grown and is expected to remain strong throughout the year.

Homeowners are being encouraged to shop for a remortgage. The opportunity to save money and build a safety net against rising interest rates is a possibility. During times when inflation is in rapid growth and causing financial issues for family budgets it makes sense to seek any relief possible. However, since the interest rate is the important factor in choosing a remortgage for many homeowners it could be a mistake to choose one simply for the fact it has the lowest interest rate.

In what is thought to be a rush to buy before interest rates were hiked upward making borrowing more expensive, hopeful home buyers showed up to the housing market and are still seeking affordable housing in which to climb onto the property ladder. The task will be difficult as the average asking price according to Rightmove, an online listing site for property, has exceeded the previous high and is now at £354,564. That level is 1.7% higher than in February or at a value of £5,760 more.