Spring is here and with the change of the season comes a change of focus for homeowners. Many will be busy tending to the needs of gardens as flowers push their way through the dirt to display their splendor. Others will be inspecting their homes for repair after the winter months and planning to complete projects put on hold for the new year.
Although the number of mortgage products available for borrowers has increased in the last several months, recent data indicates the number of approvals during the first quarter of the New Year fell. Data from UK Finance shows bank approvals for original mortgage loans as well as remortgages decreased from January this year through February. Those close to the UK housing market feel many put their plans on hold due to the uncertainty of Brexit combined with overall sentiment about the market.
Those considering a remortgage are now facing a more relaxed process going forward. The Financial Conduct Authority, or FCA, has now changed the rules regarding mortgage lending. A remortgage is now more easily obtainable if it satisfies some new criteria. These new rules will make it possible for those in a seemingly difficult mortgage situation to find a way out through remortgage.
Homeowners have been pushing up the demand for remortgages. There are many reasons why remortgaging is popular currently. One push to homeowners is thought to be the low interest rates available from lenders. Another reason is that lenders are competitive and so not only are interest rates attractive, but incentives can sweeten the deal even more. Escaping the expected increases to interest rates from the Bank of England is also a very good reason to secure a new deal now.
Brexit woes within the UK housing market is causing many to shut down their decision making process at this time and just wait to see what happens. At a time when the entire country is waiting to respond to the Brexit outcome which is in the coming weeks, those on the fence within the housing market could be missing out on what many experts view as one of the best times ever to consider remortgage.
Those close to the UK housing market have had few words for what could possibly occur after Brexit takes place. Some believe the market could begin a violent spiral downward and take months to correct itself. Others feel there could be a flourish of activity and the market completely take off with little resistance in an upward trajectory. Recent data from the month of February has revealed the market could be just running along with business as usual.