Homeowners should have taken notice at the slightly unexpected move by the Bank of England’s rate setting committee. The Monetary Policy Committee (MPC) at the start of the month voted to increase the standard base interest rate by 0.25%. Now the rate is at 0.75% which is three times the level it was at this time last year. Remortgaging has started to look even better to those homeowners that have been sitting on the fence.

The number of homeowners rushing to remortgage has pushed figures of those attempting to obtain a new deal during the second quarter to new heights. Those in a rush currently to find a better deal are in a hurry to beat the lender hikes which are now taking place since the Bank of England increased the standard base rate earlier this month. The standard base rate was increased during the monthly meeting of the Monetary Policy Committee. The standard base rate was hiked from the former rate of 0.5% to the new rate of 0.75%.

The mortgage lending market has heated up since the Bank of England increased the base rates earlier this month. In days following the increase in base rate, many lenders have increased rates tied to original mortgage loans as well as remortgage loans. Lender competition is hitting another gear and borrowers are in prime position to benefit from it. Housing experts are urging those who have not remortgaged, to consider it now.

The official data on the housing market in June was released by the Office for National Statistics (ONS) and revealed that the average house price across the UK increased 3% in the year to June. However, it is down from the 3.5% increase that occurred in May. The average price of a home was calculated at £228,000, which is close to £6,000 higher than the average house price in June of last year.

Remortgage lending had already been dominating the mortgage lending market. Despite buyers still showing demand for property, the strongest demand was not for home buyer mortgages, but rather from homeowners looking to secure a new deal. Not surprisingly, among the remortgaging homeowners there were many seeking a fixed interest rate deal.

UK housing market house prices have been increasing at a stellar pace over the past decade, even longer. House prices across the country have been on a trajectory not seen in many years over that time. Prices easily outpaced the growth of household incomes, although wages did increase over the period. The capital city of London experienced a massive amount of house price growth during the last ten years making house affordability a challenge for many thinking of moving there. Now, the city is seeing decline in house price growth not experienced since the economic crisis.