Homeowners, when hit with the pandemic and lockdowns, didn’t waste time in making their dwellings more adaptive to their new lifestyle. Remortgages became an important tool in saving money due to the low interest rates available, but also for many homeowners a source of money as they turned their built up equity into cash. Improvements and upgrades were funded to make homes a better place for working from home, learning and studying from home, and for seeking entertainment and new cooking hobbies.

Remortgaging is usually the best choice for homeowners that have their mortgage term end. They can obtain a deal that will secure their financial health for another term. Depending on the homeowner, they might choose a fixed rate or an adjustable rate. Homeowners that do not remortgage are moved by the lender to the lender’s standard variable rate (SVR). This can be risky for some borrowers, and currently is not the best choice if saving money is an objective, since most SVRs are attached to higher interest rates than remortgage deals.

The UK housing market has proved to be resilient once more in the face of uncertainty. As it did in the beginning moments of Brexit, the market proved to still be an attractive draw and remained fluid during a global pandemic. While house prices have surprised experts and have unexpectedly shown strong growth in some areas, there are valid reasons why home buyers are showing up.

The new year is only days away and while the calendar date will be new, some things will remain the same. The pandemic will still be with us, and the housing market is expected to stay pretty much as it is through early spring. Lending might tighten somewhat, but opportunities are still to be available in mortgages and remortgages. Low interest rates, competitive lenders offering attractive deals, and a variety of products from which to choose will keep demand strong from home buyers and homeowners.

Homeowners that have had their mortgage deal end and have been moved to their lender’s standard variable rate (SVR) are encouraged to consider a remortgage. Studies have shown that the average homeowner could save £200 or more per month with a remortgage. That means without considering a remortgage homeowners could be paying more than necessary.

The housing market will continue to show resilience as the pandemic continues into 2021 according to experts. Rightmove, an online property lister, expects house prices to increase by 4% next year. The optimistic outlook for growth in the midst of a pandemic is not surprising for those currently shopping for property. The demand is strong as buyers seek more appropriate dwellings for their pandemic lifestyles.