At almost the one year mark of the pandemic taking a strong grip on the UK economy, the housing market has proven that the dream to be a homeowner is strong and well. Despite the lack of confidence by experts that the housing market would be resilient yet again, especially after the years of dealing with Brexit, home buyers did not waiver. March 2021 marked a record high in house prices with the increase over the same time last year being 6.5%.

The UK house price declined a bit in March. It was expected that there might be a slowdown in the market in March due to the stamp duty holiday deadline looming on 31 March. Most had already rushed to buy to beat the deadline. A slowdown was forecasted. It occurred, and the average house price declined, but not by much. The average house price fell by 0.2% in March.

The remortgage lending market could see higher demand in the coming months for a very different kind of reason than expected. The low interest rates and higher loan to value (LTV) levels are expected to keep interest in remortgaging, but another reason for more remortgages being approved could be that homeowners will be forced to stay put as the housing market’s supply grows incredibly thin. Home movers will likely find it difficult to find or afford their dream home among the properties on the market and will be forced to stay where they are and make the most of their current dwelling.

Following the March Budget, consumer confidence has risen according to the latest report from the Building Societies Association (BSA). Out of over 2,000 adults polled for the survey, 37% reported that it is a good time to buy property, which is up from the 27% reported in December. The extension of the stamp duty holiday from the original deadline of 31 March to the end of June is expected to keep hopeful home buyers interested in the housing market. The deadline extension was announced during the March Budget.

The continued low interest rates are creating opportunities too good to pass over even in the midst of financial uncertainty during a pandemic. Mortgage and remortgage lenders are not only offering low interest rate deals, but they are becoming more competitive to grab the attention of borrowers. Loan to value (LTV) levels are rising making it possible for hopeful home buyers to get on the property ladder with lower deposits and remortgaging homeowners are finding more products available from which to choose.

Remortgaging could be a powerful source of gaining a healthy stronghold financially as the pandemic continues. Even after the pandemic there could be benefits, as homeowners could secure a fixed interest rate remortgage deal that could enable savings for months and years to come. It has been reported by the latest Remortgage Snapshot from LMS that homeowners remortgaging in February saved an average monthly amount of £217.