The economy is on a path of strong recovery, so says the Bank of England. In fact, the recovery is expected to be stronger than it has been in almost 70 years. The UK economic growth outlook strongly puts aside any anticipation of further cuts to the standard base interest rate by the Bank. Therefore, rather than cheaper borrowing ahead with further interest rate cuts, borrowers should be ready to face more costly borrowing, especially in large borrowing situations such as seen with mortgages and remortgages.

The Bank of England earlier this month issued a very positive outlook for 2021. The Bank expects the economy to grow 7.25% this year, which is the highest rate forecasted in more than 70 years. The forecast is a reset from that offered only three months ago which was 5% lower. The strong outlook was given as the UK is still under lockdown restrictions and on alert as to further complications from Covid variants that could set back progress as the populations seeks to get vaccinated.

The housing market has seen yet another year of resilience that no one could have accurately predicted in the face of a pandemic at the start of spring in 2020. The UK housing market surprised and stood strong during Brexit, and again in the pandemic. Even with the continued uncertainty about lockdowns and Covid variants, the housing market is surging. In April the average selling price reached another record high at just over £258,000.

Remortgaging is helping homeowners in many ways, and of course the most obvious is to save money. However, there are many other benefits available with a remortgage. Some homeowners are releasing built up equity into cash to upgrade and improve their homes while still saving money every month with a lower interest rate. Others are finding peace of mind by securing a fixed low interest rate that will protect them from rising rates during the continued uncertainty in the economy due to the pandemic and after.

Is there anyone that couldn’t use a bit more cash in hand these days? The ability to get more cash might be through a remortgage. Homeowners are seeing the value of their homes increase even while in the midst of a pandemic. In fact, some are seeing the value of their home increased by double digits in just the last six months. The reason that home values are increasing is due to the high demand from buyers in the housing market. The average house price in the UK hit another high last month, and homes are staying on the market for fewer days before finding a buyer. This in turn is increasing the value of properties in the UK.

Homeowners are facing many choices currently. There is no clear choice as to which would be the best course to follow when it comes to the lending market. The good news is that while there may be conflicts as to which choice is right for each homeowner, at least there are choices and more than one. In addition to the variety of paths to take, remortgage, not remortgage, or sell, there are advantages to each choice and only one might be the wrong choice for most.