In 2024, more than one and half million homeowners were to come to the end of their mortgage terms according to UK Finance. Some of those at the expiration of their mortgage term have failed to remortgage to secure a new deal and were moved to their lender’s standard variable rate or SVR. The reasons could be varied, but it might be guessed that some may not have understood the benefits of a remortgage, while others could have chosen to wait for cheaper interest rates. The choice to wait was likely helped along by the forecasts of cuts to the standard base rate by the Bank of England’s Monetary Policy Committee (MPC). 

Next week is the gathering of the Bank of England’s Monetary Policy Committee (MPC). The meeting will be on Thursday, 19 September and will follow the previous day’s release of the most recent inflation data. The expectation is for another rate cut to occur in 2024, and if it happens this month it would mean two consecutive meetings with a reduction. There will not be a meeting held in October, so after the September meeting, the next opportunity for a majority vote by the MPC to cut the base rate will be in November or December. The possibility of a second-rate cut has pushed some hopeful home buyers and homeowners in need of a remortgage to wait for the possibility of lower interest rates.

According to recent reports, the UK housing market has realized stronger demand from buyers in the last two months. In August, the average house price data revealed the largest increase in two years. According to those on the inside of the housing market, new attention from buyers in the market has increased as mortgage interest rates have dropped.

The UK housing market is seeing a boost in demand from home buyers. One reason is due to the lower mortgage rates being offered by lenders. Another is there is a greater supply of listed properties currently on the market. According to Halifax, the average UK house price reached a two-year high in August. The 0.3% increase last month followed a 0.9% increase in July. The August average house price reported from Halifax is £292,505. The annual increase is 4.3%, which is a reflection of the lower demand in the market last year due to higher mortgage interest rates.

Halifax has released their latest data on the state of the UK housing market. According to the report, house prices reached a two year high in August. Prices were up 4.3% compared to last year and the average house price grew to £293,507. Much of the reasoning for the higher demand in the market is due to the lower mortgage rates offered by lenders, with many interest rates below the current Bank of England’s standard base interest rate of 5.0%.

There are moments when things come together and fit nicely to reveal a pleasing picture such as when one is doing a puzzle. Now the pieces are coming together in the economy to signal a picture revealing it is an exciting time for homeowners to remortgage. Lenders are dropping their offered rates, they are opening up their best interest rate remortgages to more qualifying homeowners, and home buyers are busy in the housing market pushing up property values and therefore giving homeowners better loan to value or LTV ratios which puts them in reach of better low interest rate deals.