According to experts, the housing market is forecasted for continued growth and strong demand throughout the year and into the next. Home buyers are putting space as a priority and that is expected to still be the most desired aspect of a home. This will bring in first time buyers to the market as well as motivate homeowners to become home movers to gain the space in and outside the home and make day to day living more comfortable and a better fit for the pandemic lifestyle.

The Bank of England’s Monetary Policy Committee (MPC) held their September meeting on Thursday. The decision concerning the possible increase in the standard base interest rate was expected to be watched closely. Though few felt the interest rate would see an increase despite rising inflation, the meeting was expected to reveal how strongly some members believed an increase would be needed sooner rather than later.

The current standard base interest rate maintained by months by the Bank of England’s Monetary Policy Committee (MPC) is at a historic low of 0.1%. It is the lowest rate set in the over 300 year history of the Bank. This week the MPC will meet on Thursday, 23 September, to determine whether the interest rate should be changed, if at all. It is possibly the most likely month in which a change could occur since the rate was changed to its current low.

The housing market has been running on full steam nearly since the pandemic took hold on the UK last year. Lockdowns didn’t impact it due to the ability to digitally review a property, but in fact fueled the demand. Buyers were anxious to find the pandemic lifestyle dream home with more space and a garden. The housing market remained resilient while other sectors of the economy tanked.

Remortgaging had been lacking in demand in comparison to the demand for mortgages from first time buyers and home movers. Buyers were anxiously entering the housing market to secure a better suited home for their pandemic lifestyle. The many lockdowns and continued threats from the pandemic pushed homeowners and renters to take a second look at their current home. If it didn’t allow space for privately working from home, studying for children, and have green areas to escape safely to the outdoors, then a move was deemed necessary. Yet, there were those that stayed put and now they face a unique and beneficial opportunity.

Remortgaging is growing in demand, which isn’t surprising due to the many benefits it can offer a homeowner. With the low interest rates being offered, some below 1%, borrowing is amazingly cheap. The lower the interest rate, the greater the savings, and in comparison to what some homeowners are paying on their lender’s standard variable rate (SVR) it has been noted that they could be saving hundreds of pounds per month.