Homeowners are shopping for remortgages and there is a good reason that demand is so high for remortgage lending. The Bank of England’s Monetary Policy Committee (MPC) has been responding to the high rate of inflation by increasing the standard base interest rate. It has been raised in the last four consecutive MPC meetings. What was the lowest ever interest rate in the 300 plus year history of the Bank in December of last year of 0.1% has been increased to 1.0%. 

The housing market is still quite busy. The demand is strong as home buyers are still inquiring as to available properties through agents and online listing sites. Supply in the market is low, but competition for properties is evident when shopping for property. Activity in the market could be evidence that there are buyers seeking to secure their purchase before more interest rate hikes occur and borrowing becomes more expensive. 

The UK housing market is expected to begin a slowdown, but not just yet. The demand for property is still high with numerous reports from property listing sites, estate agents, builders, and lenders revealing another record high in UK housing prices. This is despite the increase of inflation, the continued impact of the pandemic, higher energy and fuel costs, and higher borrowing costs. 

It was expected. The average house price showed growth in the current May report released by Rightmove. With yet another increase by the Bank of England’s Monetary Policy Committee (MPC) in their last meeting, it was expected there would be a rush to buy. Rather than pay perhaps even more with the next rate hike or face higher offers from lenders, buyers took action and entered the market with a serious intent to buy. The average house price reflected the strong demand, but it was higher than could have been predicted due to the four consecutive standard base rate hikes by the MPC.

Remortgaging demand has grown due to rising interest rates. The Bank of England’s Monetary Policy Committee (MPC) has voted to increase the standard base interest rate at each of the last four consecutive meetings. The rate began its hike from a 300 plus year historic low of 0.1% in December. It was increased to 1.0% in the May meeting. Experts are warning that more increases could be ahead and homeowners should review their current mortgage and determine if a remortgage might be helpful to prepare for the financial strains ahead.

The housing market has been on an upward surging trend since the beginning of pandemic lockdowns. What was expected to slow down buyers actually spurred rapid growth in demand for property. The lockdowns created what was called a Race for Space as buyers sought out more space both inside and outside in desired property purchases.