Homeowners in the UK May Have Another Smart Reason for Remortgaging

Homeowners in the UK May Have Another Smart Reason for Remortgaging

The fact that remortgages are popular with homeowners is given to many factors, however a new report by Zoola might better explain it by showing that UK homeowners are more likely to stay put rather than move home. The average across UK that homeowners stay in a home is 20.8 years. In the areas of Kensington and Chelsea, in fact in most of London, homeowners stay put for much longer for an average of 35.5 years.

The reason for Londoners staying longer is explained as being due to high costs including stamp duty required for a property purchase. Zoopla reports that the average property value in London is at more than £2M. Property values of this level would require stamp duty costs of £153,750.

Oxford, in southern England, was the area outside of the capital that kept homeowners settled at a longer time period than the overall average at a bit over 31 years.

When homeowners stay put, a remortgage is an important financial opportunity to save money and give peace of mind especially during economic uncertainty, such as currently exists with Brexit.

Experts expect that at least one interest rate increase could occur by the end of the year. Considering that in the short period of the first increase in years, there were two that put the historic low standard base rate three times higher from 0.25% to 0.75%. Another increase could have a homeowner paying more than necessary. Remortgages could help a homeowner escape rising rates for years to come depending on how long of a term they secure with a fixed rate.

Reports from lenders have revealed that the current most popular remortgage is a five year fixed rate remortgage.

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