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. 

The stamp duty holiday was extended in March to keep home buyers interested in purchasing property. The tax relief was pushed for a few more months and was due to be reduced at the end of June and then completely be eliminated at the end of September. The rush to buy as the March deadline neared caused concern that without the discount home buyers would retreat. The extension kept the housing market busy, but despite the 30 June deadline to reduce the savings, buyers have remained and demand is still strong.

Homeowners have been encouraged to consider a remortgage. With the ability to get a lower interest rate, a homeowner could save hundreds of pounds per month if not more. Those most encouraged to shop for a remortgage are the homeowners that had their mortgage deal end and because they did not remortgage were moved to their lender’s standard variable rate (SVR). On a SVR, the homeowner could be paying on an interest rate that is double or more that offered with a remortgage. No one should pay more than necessary, especially during a pandemic, and certainly no one should be paying double or more than they need to pay.

For homeowners considering a remortgage, we have one question, “What are you waiting for?" Borrowing has become cheaper than seen during the economic crisis. The standard base interest rate set by the Bank of England is at a historic low, which means it is the lowest interest rate ever set by the Bank in over 300 years. If you don’t understand what a low interest rate means, it is the cost of borrowing. Lower interest rates make it cheaper to borrow than higher rates. With historic lows, that means borrowing is cheap, and very cheap in relation to what was seen before the pandemic and before.