According to experts the rising house prices will likely keep many households from being able to afford to buy their first home.  Despite the assistance from the Help to Buy scheme in supporting low deposits and government backing of mortgages, if prices rise too far too quickly the programmes aimed to help first time buyers will be of little use.  There is a shortage of homes on the market in relation to the demand from buyers and that is pushing the average house pricing upwards.

Many homeowners are just not interested in selling with remortgage deals some of the best in years and with news of possible interest rate increases as soon as next year.  Rather than moving home, the possibility of saving money with a remortgage switch is too enticing to overlook.

Rising house prices have a direct correlation to an increase in home values.  With the increase in house prices, homeowners see a possibility of cashing out their equity with a remortgage and easing their debt burden by consolidating debt.

Also, news of higher house prices by a possible 6% in the next five years according to RICS may motivate homeowners to remortgage and stick, knowing they can recoup value in their current property that they missed out on during the recession.

The new Mortgage Market Review (MMR) which will be effective on April 26 is due to make processing mortgage and remortgage loans a bit longer as lenders follow new guidelines meant to keep borrowers from getting into deals they cannot afford.  For this reason, it is expected that many homeowners seeking remortgages and buyers hoping to gain an approval for a home purchase mortgage will be pushing to beat the deadline.  This is liable to boost both the housing market and lending market for April. 

Those not meeting the deadline should not fret, as there are brokers and lenders that have been preparing for the MMR and are ready to take borrowers through the new process as smoothly as possible.