There have been many homeowners that have taken advantage of the numerous benefits remortgaging has offered during the pandemic. Those that find lower interest rates than what they had previously could save, according to reports, £200 or more per month. Some have cashed out built up equity and used the money to upgrade their property to better suit their pandemic lifestyle needs. There are many opportunities with remortgaging, but perhaps the most important is that homeowners are reporting the ability to remortgage has brought them stress relief during the difficult financial times brought on by the pandemic and lockdowns.

The pandemic has forced homeowners to review their current dwellings. Lockdowns and changes in lifestyles have pushed the need for revamping of spaces. Reinventing spaces to fit needs for working privately, study spaces for children, fitness spots, entertaining, and more has become a priority. Remortgaging has made it possible to save money and have cash in hand to complete the check list created to make a home perfect for the pandemic lifestyle and beyond.

At the end of last year, remortgaging started to grow. Months prior, the demand for a remortgage was less than demand for new mortgages from new home buyers and home movers. In the lending market, the data revealed that homeowners were choosing new dwellings rather than staying put. The reasoning was that the pandemic and lockdowns were leaving a homeowner lacking in the space and opportunity to make their current home also a school, a work place, a fitness area, an entertainment area, and the spot where the family would eat the majority of their meals.

Hopeful home buyers have been motivated to take action inside the housing market due to the savings offered by the offered Stamp Duty Holiday. It was due at the close of March, but the announcement came last week that it would be extended for another three months. The tax is suspended for properties up to £500,000.

Remortgaging homeowners are taking advantage of the very low interest rates and are choosing to take out long term fixed rate deals. Doing so locks in the low interest rate for the term of the remortgage and assures that the savings will last despite any threats of rising rates during the length of the deal. According to LMS, more than one half of homeowners that remortgaged in January chose a five year fixed rate remortgage.

Experts might not have expected that the UK housing market would be as resilient as it has proved to be during the pandemic, but the latest boost in growth was not a surprise. It was expected that the upcoming end to the stamp duty holiday would see a rush of home buyers trying to beat the 31 March deadline. According to a recent report from Nationwide, property buyers created a new record high average house price.