Remortgaging surges in March

Remortgaging surges in March

The latest research from Connells Survey & Valuation has revealed that remortgaging activity rose to 21% of the valuations market in March, increasing from 15% year-on-year.

As the inflation rate hits its highest level since September 2013 , homeowners have sought to off-set the rising cost of living. The growth in remortgaging has been driven by those eager to save money by slashing their monthly mortgage repayments.

As a proportion of market activity, remortgaging has hit its highest level in March for five years.

John Bagshaw, corporate services director of Connells Survey & Valuation, said: “Remortgaging rallied in March. As the cost of living rose, consumers started to hunt ways to reduce outgoings. Food prices have been increasing at their fastest pace in three years while fuel prices have jumped 18 per cent annually . Faced with a spike in bills, homeowners have been forced to become more frugal.

For those struggling, remortgaging can offer tangible financial relief. With the low-base rate and property values increasing 6.2 per cent annually , many are seizing the opportunity to save through remortgaging at a lower loan-to-value ratio. This trend is supported by the latest CML figures which show a 22% rise in the value of remortgage activity . If the price rises continue and household bills balloon, we could see an ever greater number of homeowners turning to remortgaging to cut costs.”


John Bagshaw concluded: “Buy-to-let remortgage valuations have also seen a slight uptick. While buy-to-let valuations are at half the typical average for March, those who have decided to stick it out in the sector are trying to recoup the loss of mortgage tax relief. With market rents not yet rising, one of the few alternatives has been to remortgage. More landlords have taken this path in March, given the lower cost of borrowing and higher property values.”
                                                                                                                                        
We’ve observed a slight slowdown in the first-time buyer segment, with March seeing activity return to the five year average. After the exceptional increases seen January and February, the market appears to be returning to equilibrium and the winter upswing in first-time buyers now looks to have been a short-term bounce. Rising inflation will have hit aspiring homeowners particularly hard. Many are finding it difficult to tuck away spare income and save for a deposit.”

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brandonlee10
brandonlee10 24 Jul 2017

The financial ramifications of the triggering of Article 50, the starting gun for Britain's departure from the EU, are far from clear. Buyers will be most cautious in London, given that buying a home in...

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IrisJ.
IrisJ. 19 Jul 2017

Great advice, but may I also add that when buying an already built home, make sure you do all of the proper inspections. Most importantly pest inspection because people tend to get surprised when they

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IrisJ.
IrisJ. 17 Jul 2017

The third point is, in my opinion, the most important one. People have become too inconsiderate and careless when it comes to rented properties. If a landlord wants to protect their property, regular visits...

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cornishalan
cornishalan 10 Jul 2017

Added to the cost of purchasing these village properties are the above average maintenance costs. Particularly where the property is a listed building or requires specialist building skills such as thatching...

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Jo Mullett
Jo Mullett 07 Jul 2017

Here in Swansea, known as the Japanese knotweed capital of the UK, it never fails to amazes me that people have no idea of the potential problems this invasive non-native plant can cause when buying or...

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NathanG
NathanG 05 Jul 2017

McDonalds, for example, have been purchasing their real estate on prime locations for years. If something happens to the company they'll have invaluable assets that will be able to save them. We might

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Jonah
Jonah 04 Jul 2017

Graham: surprised to see you cite the "extra tax liability" as capping out at ?560. It doesn't - the extra tax is exponential, as it is levied on the income (i.e the inflating level of rental income you...

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Dianne Griffen
Dianne Griffen 29 Jun 2017

Be very wary of anyone bringing you deals that they have ?found? and want to ?sell on to you? or ?joint venture? with you on ? you need a proper legal contract for this, involve a RICs surveyor to confirm...

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jason hadzikostas
jason hadzikostas 28 Jun 2017

The most important thing is a budget. Students have to manage their spendings in food, house maintenance, books and many other things. According to me, student Studios are the perfect option for them as...

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SecomTech
SecomTech 22 Jun 2017

AT Last...This was discussed years ago and there was a move towards landlords registering their bad tenants on a database..(can't remember where) It seems a logical step though our leaders will probably...

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Bertrand
Bertrand 02 Jun 2017

How about the Welsh Govt introducing a scheme to protect landlords against "rogue" tenants who are then taken to court for criminal damage to the properties they trash. Pretty unlikely I suspect and politically...

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AmberMorris
AmberMorris 25 May 2017

"Please don't pick a novelty tune-playing doorbell. They're not 'fun'. They're stupid." Laughed a lot to this. It's actually true, though.

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