Remortgage activity has been strong within the UK housing market for several months going back to early last year. Home owners have been taking advantage of low interest rates and benefitting from lower monthly mortgage payments as a result of lower rates. This trend is expected to continue through the end of this year and many close to the market are of the opinion there will actually be substantial increase in the number of those obtaining remortgage in Q4 this year.

House prices across the UK have been rising in a stellar manner for months prior to the beginning of this year. In the capital city in particular, house price growth has been quite robust, actually making it difficult for many to afford the property prices within the city limits. Residents of London are finding themselves searching outside the city now and discovering houses which are not only affordable, but also providing more square footage at a lower price.

Summer has come and gone and now any plans of home renovation could be over as colder weather will quickly be rolling in. Those home renovations do not need to be totally shelved however, and might still be able to be tended to before winter gets too settled. One way to finance a home renovation could be to obtain a remortgage and turn equity into cash. Many lenders are still not only offering deals with low interest rates, but also offering deals with cash back incentives. Many home experts are suggesting those who have not remortgaged to do some market analysis as soon as possible.

The Bank of England voted to raise the standard base rate early last month in a move which will start affecting those owning a Standard Variable Rate mortgage loan. Higher interest rates will be passed along to customers from the first day of this month. Those who will be affected are those customers who are not in possession of a fixed rate mortgage loan. Borrowers not on a fixed mortgage plan will be switched over to the lender’s SVR.

House prices in the month of August had a challenging period as they fell at quite a sharp rate. This decline in house price growth was the fastest decrease in growth since the year 2012. Average house price in the UK fell from the July price of £217,010 to the August average price of £214,745. Remortgage activity also slid a bit as the number of house owners seeking a deal or who have already obtained a remortgage deal is falling making an impact on those lenders who are ready to offer deals with low interest rates and special incentives.

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.