The latest report on mortgage approvals from the Bank of England has revealed they have reached the highest level since 2007. The pandemic has not harmed the dream to become a homeowner and some reports have estimated the pandemic has driven the demand from home buyers.
The housing market was thought to suffer from the pandemic, but it appears it has actually received a boost during the Covid-19 outbreak. As families have had to stay at home more, it has spurred a desire to buy a home or move home. It is thought that home buyers are looking for a home to better suit the needs of a family forced to accept a new normal pushed upon them by a pandemic. Perhaps it is more room, or a garden, or other need.
Homeowners are expected to show stronger demand in the months ahead for remortgaging. The repayment holidays offered due to the pandemic are to end soon. Many will be coming to the completion of their mortgage terms and they will have to decide whether to remortgage or allow their loan to be moved to the lender’s risky standard variable rate (SVR). Since remortgages can offer more of a savings and security from rising rates with a fixed rate choice, homeowners should be keen to choose a remortgage.
A recent report on remortgage data from LMS has revealed what experts have pointed out to homeowners, and that is savings are to be found. According to the Monthly Remortgage Snapshot report for September, the average repayments of homeowners securing a remortgage declined by £200.76 per month. Over the course of remortgage term, that is a large savings to ease the financial strains of the pandemic.
Experts are warning that remortgaging could become quite difficult in the months ahead. As the pandemic attempts to make its greatest impact during the winter season, and homeowners will need the opportunity to save money where possible, it might be harder than expected to get a deal. This could come as a shock to the many that are due to have their mortgage terms end and were expecting a quick switch.
Experts are warning that a lending crunch could be coming this winter. Lenders are already pulling deals and interest rates are increasing. Rates have risen for the third consecutive month and the number of products on the market has been reduced for the fourth month in row. There are fewer remortgage and mortgage products available now than were available prior to the pandemic lockdown. Therefore, those homeowners looking to remortgage and home buyers looking to get on the property ladder with an attractive interest rate are advised to start shopping for a deal sooner rather than later.