The remortgage market in the UK has grown considerably over that past few years. This time last year, in fact, a record number of UK homeowners took advantage of low interest rates and rising property values by releasing housing equity through remortgages. Driven by the desire to make home improvements and extensions, rather than moving, many homeowners found themselves in a position to borrow additional money without paying more, simply by switching to a new mortgage deal. Win-win.
However, given the recent interest rate increase by the Bank of England, which brought an end to the decade-long 0.25% base rate, is releasing equity to make home improvements still an attractive option? For many homeowners, it is. If this is something you are contemplating, now is the time to remortgage, especially if the value of your property has increased since the start of your current mortgage. Housing stock is increasingly low, so remortgaging with a view to making home improvements is also a good option if you’re struggling to find a bigger or more suitable property to move to.
Many lenders are offering very competitive fixed-rate mortgage deals at the present time, hoping to attract new customers before the end of the year—and ahead of further interest rate increases that are predicted over the next few years. Securing one of these deals will allow you to set your monthly payments for the next two-five years and avoid increased monthly payments, whilst also releasing some funds to make home improvements and boost your loan-to-value ratio.
However, extensions and renovations are not everyone’s cup of tea with all the complications and inconvenience of maybe having to live in a construction site for a while. If that is you, but you would still like to live in a bigger home, why not call your local Clyde Property branch and begin your property journey today?
We wish you best of luck with your home improvement plans in 2018!
