According to studies, there are many homeowners that are unaware of remortgaging. Those that are familiar with remortgages often have misconceptions. Due to the many opportunities through remortgaging, experts encourage homeowners to take a look and learn all they can rather than miss out. This is especially so due to the current state of the economy, upcoming impacts to household budgets, and the benefits that could be realized with a new deal.

Homeowners have surely heard the advice coming from many sources: remortgage while the opportunities are at their best and that means now. With rising interest rates, the cost on a property loan is becoming more expensive. Those homeowners that had their mortgage deal end, did not remortgage, and were moved to their lender’s standard variable rate (SVR) are especially encouraged to shop for a remortgage. However, so are those that are on a tracker deal, are close to having their mortgage term end, and even some homeowners that would be required to end their mortgage term early.

Homeowners are encouraged to shop for a remortgage sooner rather than later. There are numerous factors coming into play with the economy that could cause problems for those that are on tight budgets. The good news is that despite the pressures mounting in the economy that could impact households, there is a substantial savings opportunity with a remortgage.

Yet another report has shown that the housing market was still on an upward trend in January. According to the Royal Institution of Chartered Surveyors (RICS), 16% of respondents reported they had an increase in demand from hopeful home buyers. There was a 9% increase from December, which had given the strongest reading since the stamp duty holiday reached its peak in May 2021.

With the warning of higher interest rates, there was a rush to buy in the housing market. Home buyers were faced with higher house prices, but the ability to borrow a large volume of money at a low interest rate level was going to slip away. Because of the demand from hopeful home buyers, and the low supply in the market, house prices reached yet another record high. Halifax revealed that there was a 0.3% increase from December to January, and the yearly increase was 9.7% over the 12 months to the end of January.

As house prices rose across the UK, home buyers were still able to manage a climb onto the property ladder due to low interest rates. During the time, up to the end of September last year, the stamp duty holiday also assisted buyers. However, now that house prices are higher due to a shortage of supply in the market, and interest rates are higher, it is expected that a large number of hopeful home buyers are once again going to be shut out of the housing market. This could cause yet another problem, especially for homeowners.