The housing market may be in for a bigger boost than expected as consumer confidence is reported to have reached the highest level in over 15 years. With consumers keen on spending more and responsibly taking on debt, more first time buyers may feel ready to climb onto the property ladder, especially with interest rates currently so low. This in turn will be good news for homeowners that have been waiting on higher equity levels before remortgaging.

Remortgaging homeowners should keep a close eye on lenders and watch for signs of them pulling their cheapest deals. For when demand increases for mortgage lending it will put an end to the now competitive market that exists as lenders fight for the attention of borrowers. Getting a remortgage while the deals are so attractive could earn the homeowner a substantial savings.

The consumer confidence index compiled by GfK showed that all five measures of their survey, including optimism in personal finances as well as the UK economy increased in June from the previous month.  The index rose by 6 points to 7, which is an indicator that consumers are willing to buy large ticket items such as furniture and electronics.

Consumer confidence is now reflective of spending in January 2000. However, with zero inflation consumers have more spending power than before. Pay growth has increased as well at 2.7% in the three months to April in comparison to last year. This marks the fastest pace of pay growth since December 2008.

Joe Staton, the head of market dynamics at GfK, remarked, “We’re seeing a dramatic uptick in confidence this month, a real post-election bounce that’s put a spring in the step of consumers across the UK. June’s six point jump takes the Overall Index Score back to levels not seen since the late Nineties or early days of the Noughties.

“This renewed optimism could also translate into a busy time for retailers. The number of shoppers agreeing that ‘now is a good time for people to make major purchases such as furniture or electrical goods’ has powered ahead by a buoyant 14 points this month compared to negative sentiment for the same period last year.”