UK housing market lending is at the mercy of the standard base rate and ultimately what happens with inflation. Last November, the inflation rate stood at 3%. This is a level which is higher than the target rate of 2% set by the Bank of England. The Central Bank is charged with holding inflation at the 2% rate which is now again sitting 30% higher than the target rate. There are whispers of a possible rate hike coming in the coming weeks.

Currently the lending market is still very competitive. Lenders are looking for new customers, especially in the mortgage and remortgage areas of lending. In order to gain attention, deals are offered that cannot be ignored. Low interest rates are coupled with other benefits such as free valuations and legal work. 

For the second consecutive month, house prices in the UK declined. Experts are suggesting that consumers are putting off major expenses and investments, such as buying a house due to the lack of buying power. Inflation is putting a tight grip on household budgets and some may be putting off their dream of owning a home or upgrading to a larger property as caution comes into play.

The current state of the UK housing market is leaving few house owners to know exactly what their next course of action should be. Interest rates are still at levels which allow many who are thinking of a remortgage to do so and be glad they did. Inflation is causing many households to focus on ways in which to save money each month. Those who are in position to obtain a remortgage are doing so with favourable results. The path to saving money appears to be starting with a mortgage lending tool which has been around for decades.

The future of interest rate hikes became clearer recently as the Bank of England kept the current standard base rate at the same level, but warned the change in rates was coming. Inflation remains beyond the Central Bank target rate of 2%. It currently sits at 3%. One sector which is almost operating in anticipation of the rate hike is the remortgage sector. Activity remains high compared to other forms of mortgage lending.

London residents who are owners of properties looking to sell a residence of more than £1m are now seeing the speed of the current housing market. According to data from a poll of estate agents, this group of property owners found it quite difficult to find buyers for these properties during the month of January. This piece of data has led this market to being referred to as subdued by many housing experts. Demand for property, fewer overall sales, and fewer properties coming on to the market are all being blamed for the state of the market, according to the Royal Institution of Chartered Surveyors.