Homeowners are facing many choices currently. There is no clear choice as to which would be the best course to follow when it comes to the lending market. The good news is that while there may be conflicts as to which choice is right for each homeowner, at least there are choices and more than one. In addition to the variety of paths to take, remortgage, not remortgage, or sell, there are advantages to each choice and only one might be the wrong choice for most.

Let’s get to the clear choice and that is whether or not to remortgage. If you are interested in saving money, then a remortgage is likely the choice. At the end of a homeowner’s mortgage term the decision is to remortgage or to be put on their lender’s standard variable rate or SVR. Recent studies have shown that while a SVR could be a lower interest rate than what they were used to paying, it could be double more than the low interest rate offerings with a remortgage. 

No one should pay more than necessary. If a remortgage can save the homeowner money, and it could be a lot of money, possibly thousands per year, then a remortgage could be the smartest move. Getting a fixed rate remortgage could save money for years and help the homeowner escape rising rates. 

It has also been reported that homeowners are finding stress relief and peace of mind with a fixed rate remortgage. It is not a financial benefit, but it certainly is important and some would say priceless. Therefore, if a risky, possibly fluctuating SVR isn’t attractive, then shopping for a remortgage could be the right choice for many reasons.

Another option many homeowners are considering is selling. The average house price in the UK keeps setting new records. Home buyers are very attentive in the housing market and new properties put on the market are selling quicker than perhaps ever before according to various reports. It certainly is an option, especially with low interest rate mortgages available for the homeowner to consider with their new dwelling after selling their current one. 

However, once a homeowner decides to sell their property they will be looking for a new one, and they will be competing with other home buyers and paying higher prices like the rest. 

There are specific reasons homeowners might want to sell and that is to move locations, to downsize, to get a larger home for a growing family or to make room for elderly parents or other relatives. Also, selling in a higher demand location and buying outside the strongest market areas could offer up a financial reward. 

Remortgage or not, probably remortgage. Shopping around online for deals will yield information and quotes that will help a homeowner make an informed decision as to the savings available and whether to take action and secure a savings or take the risk with a SVR.

Sell or not? That is more complicated, but certainly a consideration when the housing market is buzzing with buyers and interest rates are low for a new purchase. 

At least there are options, and opportunities, including investing and becoming a landlord with a buy to let property. No one could have clearly predicted that a little over one year into a pandemic that the housing market would be seeing record average house prices.  Yet, there is still uncertainty as to how long it will last, when will it come to a rapid halt, and will interest rates begin to rise. Once that happens, the choices available today will be quite different.