Now is an appealing time to look at refinancing property and we have seen a surge in UK homeowners doing just that over recent months. The steady growth in the remortgage market place is fuelled by purchasers, homeowners and buy to let investors taking advantage of reduced interest rates with the uncertainty in the current market place. We are seeing many high street lenders releasing new products and reduced rates; and a major driving factor behind this current market position is of course Brexit.
Market predictions suggest the reduced rates will continue into spring 2019 at least, meaning now may a good time to start the refinancing process.
At the same time, house prices are dropping. Whilst the annual change in house prices reveals a modest drop in the market from 0.5% to 0.4% compared with late 2018, the really interesting fact is that this represents the lowest annual growth in 6 years. The Nationwide House Price Index confirmed the average UK home is now worth £211,966 compared to £212,281 in December 2018.
There is an expectation that even in this period of economic uncertainty, we will see a moderate increase in house prices as we move further into 2019; as long as borrowing costs remain steady and the economy continues to grow at a stable rate.
For more information please contact our residential team.