Remortgage lending is expected to see a surge in the coming months due to homeowners seeking to secure a low interest rate. The Bank of England’s Monetary Policy Committee (MPC) could, according to experts, increase the standard base interest rate in May. Should the committee vote by majority to increase the rate, it will likely be an increase of 0.25% bringing the rate to 0.75%.
In April, the Help to Buy Scheme enacted by the government to assist first time buyers onto the property ladder will turn five. This will be marking the end of the early adopters of the scheme’s mortgage terms that had five year fixed rate mortgage terms. At the end of the terms, the buyers will either remortgage or will be moved to their lender’s standard variable rate (SVR).
Rates are potentially going to rise again soon and that is pushing many to obtain a new mortgage loan on their home through remortgage. What is happening with remortgage currently has been expected by many close to the housing market. Ever since the Bank of England began speaking about the possibility of a rate rise in May, lenders have not had a chance to raise their heads. Home owners are grabbing up remortgage loans with vigor and that trend is not expected to slow down any time soon.
After the March meeting of the Bank of England’s Monetary Policy Committee (MPC), experts forecasted that there could be a standard base interest rate increase as soon as May. The news that 2018 would be experiencing an interest rate increase so soon after the increase in November could have many homeowners’ attention. Those that have had their mortgage deal end and have been moved to their lenders standard variable rate (SVR) should be the most interested, though any homeowner could find current interest rates attractive when facing possible increases.
Brexit has created an air of uncertainty which is undeniable within the UK housing market. This uncertainty has placed hesitation in the minds of many on decisions like placing a home on the market for sale, or making an offer on a home to purchase, and even making some question the idea of remortgaging or waiting for more solid ground. Whether in the market or on the fringes Brexit has not only created a careful approach to decisions, but also put many on simply hold status. New housing forecasts for this year however are painting quite the bullish picture.
The housing market reports for March will soon start appearing and experts are forecasting a decline in the average house price for the UK. The decline will likely be small, but a decline all the same and mostly blamed on the falling demand for housing in London. The blame on the fall in demand is being put on many factors some of which are Brexit, lowering consumer confidence, stamp duty costs for higher cost properties, and even a natural correction to overpricing in the London market.