The Office for National Statistics (ONS) released their November data and with it the first monthly decline of the average house price in a year. The average house price declined by 0.3% between October and November. It also brought decline in the annual house price growth rate to 10.3%, down from the recorded 12.4% in October. Lower than the October record high of £296,000, the November average house rate of £295,000 reported by the ONS is still much higher than the average that existed prior to the pandemic.

Homeowners in December were facing the holiday distractions and likely trying to cypher through the information on what to expect from the coming year. Fewer sought out remortgaging, but fewer home buyers were in the market as well. According to a statement by LMS CEO Nick Chadbourne, “Mortgage activity slowed in December as borrowers expect rates to drop in the new year.” 

With rising interest rates and growing inflation making saving money for a deposit difficult, the housing market has lost the attention of hopeful home buyers. Home sellers have dropped their asking prices to find buyers, and according to Rightmove the average asking price in January is £8,720 less than the peak asking price of October. However, the average asking price increased by £3,301 In January after declining in the two months prior.

The relaxed, opportunistic, no fear home buying and ownership of the past years has faded with the new economic environment. Now warnings abound of financial hardships in the coming months for hundreds of thousands of homeowners. This is especially true for newer homeowners that have yet to have their first mortgage term end. Not only could they be facing affordability issues, but they could also become a prisoner to their mortgage.

Experts have been encouraging homeowners to shop for a remortgage in the hopes of escaping paying more than necessary. As interest rates have risen, so has the cost of borrowing. For homeowners coming to the end of their mortgage term, higher interest rate choices amount to higher repayments. A remortgage could save money at a time when savings could be most needed and shopping for a remortgage could provide the answer as to how much.

Homeowners are being encouraged to consider a remortgage. It is one way in which a homeowner could find relief from the financial strains of today’s economy. Inflation, higher energy costs, and higher interest rates are all taking a toll on household budgets. Rather than pay out more than necessary, it is a smart strategy to try and save money when possible, and a remortgage could be helpful to a homeowner seeking savings.