Homeowners are expected to show strong demand from lenders for remortgages in the next few months. The reason behind the expected strength in demand from homeowners is the recent increase to the standard base rate by the Bank of England’s Monetary Policy Committee (MPC). The homeowners that are about to have their mortgage deal end and those that have already had their deal end are encouraged to take notice.

Mortgage lending in the UK housing market is now seeing excellent opportunities open for first time buyers as well as those in search of an original mortgage loan. Since the Bank of England’s Monetary Policy Committee increased the standard base rate earlier this month, lenders are cutting rates to first timers and others in search of mortgage lending. In the opinion of some housing experts, it is a great time to obtain mortgage lending.

Those home owners holding a tracker or variable rate mortgage loan were impacted earlier this month as the Bank of England made the decision to increase the standard base rate from 0.5% to 0.75%. This increase appears slight in stature, but could mean the difference between affording the monthly mortgage payment or struggling to get through the month. Housing experts believe there are a smaller number of home owners holding a non-fixed rate mortgage loan now which will affect demand of remortgage for the coming months in the near term.

Homeowners are expected to seek out remortgages over the coming months due to the increase in the standard base rate by the Bank of England’s Monetary Policy Committee (MPC). To escape higher repayments is likely the number one reason most will be looking for a remortgage. However, there are other benefits to remortgaging and one of those is that a homeowner could release equity into cash. The homeowner can then use the cash for whatever they want.

Remortgage activity remains strong with July economic data. Gross remortgage lending grew almost 3% in number compared with the same time last year and totaled almost £25bn during the entire month. Home owners are finding deals from numerous lenders propping up the amount being remortgaged. The buy to let sector is also remaining strong as the hot months of summer come to a close. Some experts feel the specialized sectors such as residential and buy to let will likely slow due to fewer owners of tracker and variable rate mortgages.

July figures from the UK housing market have been totaled which illustrates where the market has been in the last year and possibly where it is headed. Mortgage approvals fell in the month of July to 39,600. June mortgage approvals numbered 40,300 which means the month of July saw approvals dip. This has led many to believe the last of the housing market slowdown has not yet occurred. The slowdown started late last year and has continued through the first part of this year. Many housing specialists see the slowdown continuing for at least a few more months.