The pandemic impacted the UK housing market in 2020, but unlike what was expected with a dramatic slowdown, the market proved to be resilient. The lockdowns and need to spend more time at home made individuals and families reevaluate their dwellings. The home now had to be more than a place to contain our belongings and sleep. It became where we worked, our children studied, it became our gym, our place to worship and meditate, and where we sought entertainment through online streaming of films and game nights. For many, the new need meant finding a different place that could make all of that more possible and comfortable and as a result the housing market became busy.

It is not surprising that homeowners sought out remortgages in 2020. The interest rates were low and offered savings for those that chose to get a deal when their mortgage term ended. Rather than pay more than necessary when being moved to the lender’s standard variable rate (SVR), homeowners shopped for remortgages and took advantage of the benefits available. Lower interest rates could save money, a fixed interest rate could lock in the savings for months or years, and for those that wanted to cash out their built up equity, it could put money into hand during the pandemic.

Home buyers might find themselves facing an unexpected tax bill according to experts as the end of the stamp duty is set to expire the end of March. Approximately 100,000 home buyers are facing delays that could put them past the deadline and therefore facing an expenditure they were trying to avoid. It is unknown at this time if the holiday will be extended. The tax relief has helped in boosting interest in the housing market and without it a lull in the built up momentum of home buyers will surely occur.

Homeowners that have their mortgage deal end and do not remortgage are moved to their lender’s standard variable rate or SVR. The lender’s SVR could actually help the homeowner if it is a lower interest rate than what the homeowner was used to pay on their mortgage term. However, the SVR can be risky to a household budget that cannot handle a fluctuating rise in their interest rate. That is why most homeowners will seek a fixed interest rate remortgage so that they lock in a low rate rather than facing a possible rate increase.

The new year has just begun and to make the most of it, there are opportunities to be found to make it a good start financially and could set up the best possible year ahead. Homeowners have the unique opportunity to grab a remortgage and with it all of the benefits attached. In a year ahead of unknowns due to the pandemic’s impact on the economy, the ability to leave more money in the household budget would be a good start.

The housing market through 2020 showed resilience and surprised even the most optimistic of those offering forecasts back when the pandemic started to impact the economy. However, despite lowered interest rates that would be expected to attract home buyers, demand grew even stronger. The need for a pandemic lifestyle dwelling became more important as lockdowns occurred and it was obvious Covid-19 wasn’t going away anytime soon. Spaces for working at home, studying areas for the children, and other home life needs pushed action for first time buyers and home movers to buy.