Buying a home is a dream come true for home buyers. The stress of shopping, the process of securing a mortgage, and then actually taking possession of the property can be filled with ups and downs. For first time buyers, it is usually a leap into the unknown as many have little knowledge of all that will be required and the steps that are taken to buy a property. Once ownership is secured with a mortgage, the new homeowners get on with living and take little notice at what is occurring with the loan they first obtained.

The housing market could be in the midst of a super boom according to Nationwide. The demand for property is at a major high. In fact, house prices grew by the fastest rate since 2004. The factors in place are all combining to push prices higher as activity continues in the midst of strong demand, low supply, very affordable interest rates, and a strong desire to secure a dwelling that will best suit the pandemic and post-pandemic desires and needs of buyers.

Last week Halifax notified brokers that they would be increasing their interest rates on remortgage deals. It is expected that others will soon follow. Borrowing has been in high demand and the rate increases could be a sign that lenders are reaching their limit on cheap borrowing. Demand will likely continue to be strong even with slightly higher rates. However, it could also be a sign that lenders are seeking to completely escape the bottom level rates that have been available for months now that the pandemic is coming under control.

The housing market is in a boom. Demand is outstripping supply. House asking prices have reached an all-time average high. The average house price across the UK has reached highs in the midst of a pandemic. The strength in the housing market could never have been easily predicted. Despite one of the factors stimulating the housing market expected to end in the months ahead, the property lister Rightmove is predicting a strong year start to finish for the housing market.

The new mortgage scheme backed by the government is now being offered by many high street lenders. Barclays, HSBC, Lloyds, NatWest and Santander are offering the scheme and Virgin Money is expected to do so next month. The scheme offers a guarantee to lenders for 95% of the purchase mortgage, which allows only a 5% deposit due from homebuyers. This will help those that found themselves compromised during the pandemic an opportunity to still buy at a time when saving for a home purchase was difficult.

Homeowners have an opportunity through a remortgage to save money. That amount of savings could be substantial. Studies have shown that a homeowner will likely discover a lower interest on the market than the one they were previously paying. For those that don’t decide to remortgage and move onto their lender’s standard variable rate (SVR) a savings is still possible. However, a remortgage could save twice as much or even more than a SVR. Passing up the opportunity to shop for a remortgage could be shoving money out the door that could have stayed in the family budget.