More surprises have been revealed in the housing market in the latest report from UK Finance. January data showed that first time buyers showed up and took advantage of the current state of the market by an increase over January 2018 by 4.6%. There were 25,100 first time buyers completed in January.
Homeowners that are near to completing their mortgage term in the near future are encouraged to shop around for a remortgage. Once the term ends if they don’t remortgage, then they will be moved to their lender’s standard variable rate (SVR). Such a rate is considered risky for many for it can change with little notice. Should an increase occur, it could cause much stress as repayments increase and a homeowner rushes to find relief with a remortgage.
The uncertainty of the impact of Brexit on the economy and the housing market has perhaps led to the recent downgrade in the forecast for 2019. According to the Office for Budget Responsibility (OBR), the average house prices are forecasted to decline by 0.3% in the final quarter of the year. There is an optimistic outlook with growth expected to return to the housing market in the second quarter of 2020 to 0.9% and 4% by the last quarter of 2021.
Remortgaging is usually a part of a homeowner’s plan to save money. When a homeowner’s mortgage term ends if they do not remortgage then the lender will move the loan to their standard variable rate (SVR). The SVR could be higher than the interest rates available with a remortgage, or it could be very similar, and sometimes it is comfortably low. However, since the lender could raise their SVR with little notice to the homeowner, it is a risky rate for those homeowners that are more comfortable with a steady budgeted repayment amount.
House owners are constantly in search of the next financial decision as a way to cut cost and move ahead. This is easier said than done. Many house owners look to change daily meals, or buy less expensive petrol, or maybe even take on another person to share the expenses of a home. One thing which should never be overlooked, according to many close to the housing market, is remortgage.
Remortgage has emerged in the last several years as a pathway for many house and other property owners to take steps in a positive financial direction and more promising future. The reasons for remortgage vary widely, but many consider it the best way to fund a new addition to the current residence or a method of securing cash for other purposes. For the most part however, those in search of a remortgage are typically looking for a way to save on the cost of the monthly mortgage cost.