Homeowners that have had their mortgage deal end and have been moved to their lender’s standard variable rate (SVR) are encouraged to consider a remortgage. Studies have shown that the average homeowner could save £200 or more per month with a remortgage. That means without considering a remortgage homeowners could be paying more than necessary.
The housing market will continue to show resilience as the pandemic continues into 2021 according to experts. Rightmove, an online property lister, expects house prices to increase by 4% next year. The optimistic outlook for growth in the midst of a pandemic is not surprising for those currently shopping for property. The demand is strong as buyers seek more appropriate dwellings for their pandemic lifestyles.
Homeowners are looking to better equip their home for their pandemic lifestyle. It appears that while many are upgrading and improving their current property, a large number are choosing to move home. It could be that they are enlarging the area to accommodate a work space or study space. Some homeowners may be enlarging their home to include extended family members to allow time together rather than being apart during lockdowns.
The UK housing market has experienced yet another impressive gain. November data revealed the strongest five month gain since 2004. Home values increased 6.5% since June, with the cost of an average home rising £3,000 according to Halifax. The average house price is £253,243, which has shown an increase of more than £15,000 since the end of June.
Homeowners are having an opportunity filled moment in remortgages. There are more remortgage products on the market, many appearing in just the last week. No doubt, there will be a few more to come as lenders attempt to match the attractive and competitive offers first brought by others to the market. The opportunities are many, benefits plentiful, and there are more choices for homeowners looking to save money with a lower interest rate, grab a fixed rate to assure savings for months and years to come, or to convert built up equity into cash.
In the midst of the pandemic, homeowners have sought out remortgages for many reasons, some of which were not present pre-pandemic. The new lifestyle forced upon everyone to spend more time at home and less time socializing, going out, dining, and traveling. We are using our homes for the majority of our entertainment, our meals, for working from home, and for children it is where they attend school. Remortgages have filled the new need of transforming our homes to better suit the pandemic lifestyle.