Homeowners are expected to pick up the demand for remortgage lending as more seek to stay put rather than move home. Most are expected to avoid upgrading in the face of rising house prices. Those hoping to seek a profit by selling off and downgrading are instead staying put and considering an arrangement with their children and handing off the family home as it becomes harder for young people to climb the property ladder.

Hometrack recently released information that there is a possibility of house prices in the largest 20 cities in the UK averaging an increase of at least 10% by the end of the year. Demand continues to grow for properties, yet fewer homes are coming available on the market.

Homeowners are also likely to stay put and remortgage with the possibility of a low interest rate deal. Lenders are continuing low fee, low interest rate remortgage deal offers that make it attractive to homeowners to take advantage. Some homeowners are optioning to do equity cash releases to allow pay down of debts, renovations to the property, or the ability to make a high cost ticket purchase.

In the course of the next few months, it will become obvious if experts in the housing market have forecasted correctly concerning the possible boom in rising house prices. Some think that there may be a larger increase than expected with nice weather sparking more interest as well as the continued attractive offers in mortgage lending to buyers, especially first time buyers.

As house prices continue to rise, homeowners are finally seeing the increase in equity levels that were lost during the recession in regions that have struggled to rise above the negative data levels. With cheap remortgage deals being offered and higher equity levels gained, it could be a great time to get a new deal, even if penalties for ending a mortgage deal early would be involved.

Experts suggest homeowners take into consideration the overall savings of a remortgage which includes not only the interest rate, but fees involved by finishing a mortgage deal or ending it, as well as fees associated with a new deal. Only by looking at the complete package can the true savings of a remortgage be revealed.