The opportunity for a remortgage is still quite alive for UK homeowners. Although there is more talk regarding the possibility of a hike to interest rates, homeowners are still quite the favourable group when considering such an option. Lenders remain competitive to pull in clients before rates increase; therefore they are still proactive when offering attractive deals.
The UK housing market is experiencing some significant changes in regard to growth in house prices, according to recent data. Evidence of a cooling off for the market seems to be appearing. House asking prices grew at the slowest rate in four years during the month of February, according to Rightmove. Buyers are simply refusing to pay for homes which they feel are overpriced.
The latest research to surface indicates the possibility of a hike in interest rates is having an effect on those choosing to remortgage. Fear is often a motivator for anyone to make a financial choice which could save them money now, but cost them money later through deciding not to carry the choice out. That is the case now with remortgaging. According to LMS, remortgage activity has increased for that very reason during the last year.
According to some startling data in a recent report, 25% of those planning on stepping into retirement this year will have a mortgage and other similar debt to repay. The report also said the average person will owe almost £25,000. It is forecasted that up to 44% of those retiring in London will be retiring in debt as well. The report lays out the results from a study completed by the Financial Conduct Authority.
The house price gap between London and the rest of the country has now risen to an exceptional amount, according to a recent report. London average house price now sits at almost £580,000. Average house price for England and Wales now sits at around £278,000. Take the difference and that equals about £300,000. This represents a ten-fold increase in the price gap which has transpired over a twenty year period.
Mortgage lending in regard to buy to let properties has not only increased in volume in recent years, but it has remained strong even in the wake of the new tax law which was introduced in April of last year. This new tax surcharge was expected to impact buy to let negatively, but had no real influence. The timing of the new tax was also anything buy perfect as the historic Brexit was still fresh in the minds of many going forward.