Remortgage Activity Booming as Home Sales Stall
A new tax introduced on April 1st sent buy to let property sales booming during the month of March this year and then toppling during the month of April. The imbalance within the buy to let sector affected other parts of the UK housing market house sales as well. Remortgage activity however has flourished most of this year and especially during the last few months.
House owners are taking advantage of the benefits found in a remortgage like never before. Even before the new tax introduction on the first of April for buy to let property, remortgage activity was running at a strong level.
During the month of April, remortgage lending posted a £6bn total which was a 25% increase compared with the month prior. This figure also represents an increase of more than 40% compared with the year 2015. This is the highest level of remortgage lending in 7 years.
Home owners are securing low interest rates and not reverting to their lender’s SVR which is quite higher in most cases. The present pace of remortgage activity will likely only increase according to many close to the housing market.
A remortgage not only makes it possible for house owners to acquire a lower interest rate, but also access valuable home equity which is stored and typically never thought about. This home equity makes it possible for home owners to pay off old debt, take a holiday, or start a much-needed home renovation. The process is now streamlined and can be completed online in quite a short time.