House prices have risen 6.8% in January compared to the prior year according to the Office for National Statistics (ONS) reported.  Excluding London and the south east area of England the increase of house prices for the past twelve months to January 2014 amounted to a 3.8% increase.  Other reports on house purchases reported that demand from buyers pushed mortgage lending to its highest level since August 2008.

First time buyers have returned in stronger numbers to the housing market as the Help to Buy scheme has helped them into property with lower deposit levels.  The higher demand for property has pushed house prices upward and homeowners are realizing higher equity levels in their properties.

The higher equity levels, low remortgage interest rates and increasing confidence in the economy has led to higher numbers of remortgages.  Rather than converting to their lender’s standard variable rate (SVR) and risking staying on an interest rate that could change with short notice, homeowners are seeking out more secure remortgage deals.  Homeowners that have already converted to a SVR could be reading the signs of possible interest rate increases from lenders and are choosing to secure a remortgage while the offers are attractive.

Homeowners are encouraged to keep patient with remortgaging as new requirements of borrowers could cause the process to be slowed down when compared with years past.  Finding a remortgage broker could help speed along the process than stumbling through alone with the new requirements going into effect the end of April.  Homeowners are also encouraged to choose a remortgage on its ability to save them money overall and to take into consideration any fees for the new deal.  Sometimes the cheaper interest rate can have hidden fees making the remortgage with the slightly higher interest rate the best deal after all.