Remortgage activity within the first and second quarters of 2018 has been at quite a heightened pace. Many close to the housing market see the surge in remortgage approvals as the home owner’s strategy against possible rising interest rates and some believe it could be as simple as obtaining a low interest rate. Interest rates remain at historic lows and are expected to stay low even if an increase takes place later this year. The Bank of England has hinted at a hike in interest rates during the August meeting of the Monetary Policy Committee.

According to recent reports the housing market in the UK has slowed with sellers requiring a longer time period in which to sell their properties compared to the same time period last year. In spring of 2017 it took approximately 16 weeks to sell a home from the point of listing the property to the point of the sale according to the Royal Institution of Chartered Surveyors (RICS). This spring the average time period it takes to sell a home after listed is 18 weeks.

Interest rates play a massive role in loans and lending to borrowers. Whether the lending is applied to credit card purchases or house mortgage loans, interest rates are what repayments are based on. In recent years, interest rates associated with home mortgage loans have been sitting at historic low levels. This is true now, but could possibly change in the coming months. Borrowers of home mortgage loans are now looking for lending which extends beyond just two or five year maturity. They are looking for more security in fixed rate loans which extend to at least ten years. That is now possible.

The Bank of England has recently made the decision to leave interest rates at their current level and not increase the base rate. Although there has been much discussion in regard to the possibility of a rise in rates, July will not be that month. Interest rates remain at historic lows and according to many close to the housing market, rates will not likely improve. This is more than likely a prime time to consider moving from a SVR of the current lender to a fixed rate mortgage lending product. In fact, recent data supports the claim that home owners could save more than £6,500 over a three year period.

There are now more than 5,000 mortgage deals available from lenders competing for original mortgage loans to home owners looking to remortgage. This is the highest number of mortgage deals on the table and waiting to be obtained since the year 2008, according to data from Moneyfacts. Lenders are offering fixed rate deals in high numbers as well. A decade ago, more than 50% of the deals available were fixed rate deals. Now, more than 80% of mortgage loan packages are fixed rate.

Looking at the recent reports on the UK housing market can be confusing. There will be one news report shouting positivity from the roof tops at the continued growth for another month in a row and more than £700 added to the average house price. Yet another news report will whisper that doom is upon the horizon with stalled growth and a decline against the house price level of last year. What is a home buyer or a home owner to think, do, or to make plans against such conflicting data?