Experts have been at odds lately. It seems that just as easily that one predicts a particular outcome with the housing market another predicts the complete opposite. Much of the back and forth and unpredictability is that no one is quite sure how consumers or the market will react with Brexit looming over the horizon.
The Office for National Statistics (ONS) reported that in May the house prices in London declined at the largest level since August 2009 which recorded a decline at 7%. Therefore, not since the financial crisis has there been such a dramatic decline. The annual comparison between May 2018 and May 2019 revealed a decline of 4.4%. It may not be at the same level as 2009, but ten years later it is the deepest since that time.
Homeowners are seeking remortgages to escape paying more than necessary on their repayments. Finding a low interest rate could help some to save a substantial amount of money. When a homeowner’s current mortgage deal ends and they do not remortgage they are moved to the lender’s standard variable rate (SVR). Experts are warning that for those that have had their mortgage deal end and those that are close to having theirs end that moving to a SVR could be risky.
Homeowners are expected to show strong demand for remortgages in the coming months. There are a large numbers of mortgages that are about to end. With over £26 billion in mortgages due to mature in October there are even more that will end in the autumn. With the opportunity to escape the higher interest rates found on a lender’s standard variable rate (SVR), a remortgage is surely going to be at the top of homeowner’s priority lists.
Given an opportunity to save money is not one that would be passed over by most people, especially homeowners. Rather than paying more money than needed, there is an option and that is to discover a low interest remortgage. Without a remortgage at the end of the homeowners current mortgage deal, they are moved to the lender’s standard variable rate (SVR) and that could be bad news for a household budget.
According to a recent report through polling homeowners and homebuyers in the UK, there is much that is lost in the way of information that could help them better navigate the lending market. Tussle, an online mortgage broker, in polling over 2,000 homeowners and those home buyers about to be homeowners, found that the common jargon used in the market is mostly unknown. Such lack of information can make it difficult for them to discover information that could be helpful in making choices as both buyers and homeowners.