While lending was seeing a boost in mortgage demand due to the 30 June deadline for the stamp duty holiday, remortgages were increasing in demand as well. Homeowners have been turning into home movers to search for their own pandemic lifestyle dwelling, but many have also decided to stay put. In doing so, they didn’t have to abandon their desire for a change in lifestyle, but instead funded improvements, upgrades, and changes with a cash back remortgage.

Home sells grew to the highest level on record as buyers sought to escape the end of June deadline of the stamp duty holiday. HMRC reported that there were 213,120 property sales in June. The deadline had been set for the end of March, but was extended until the end of June. The same rush to buy occurred in March, and will likely happen again in September. The June deadline only met with a reduction of the tax relief for home buyers. The total end of the stamp duty holiday will be 30 September.

June was the busiest month ever for the UK housing market according to Rightmove. Sales reached a feverish peak as home buyers rushed to buy and take advantage of the stamp duty holiday before the deadline of 30 June. The tax relief opportunity has now been reduced and will return to the normal tax level at the end of September. The high demand pushed the average asking price into an all new high.

The housing market has been seeing a spike of activity despite a global pandemic. In fact, the boost is being credited to the pandemic. Lockdowns and restrictions produced a desire for a dream home that could best accommodate the needs brought about by the pandemic. People desired more space. They wished for private areas to work from home, for children to learn and study, and other areas such as for fitness workouts, home entertainment, and outdoor space that could be enjoyed privately and safely.

The lending market has had strong demand due to the pandemic boosted housing market. Not only are first time buyers anxious to climb onto the property ladder, but home movers and landlords are putting in their offers for properties as well. The result is a busy housing market, as well as a busy lending market. The lending market is not only busy with home buyers, but remortgaging homeowners as well.

According to some recent polls, many homeowners are unaware of why an interest rate is important. It is important, whether in getting the first mortgage by a first time buyer or a home mover or a homeowner obtaining a remortgage. Basically, the interest rate determines how much the borrowing will cost. The interest rate is the cost at which a lender will charge the borrower to obtain a loan.