Remortgage surge expected to hit new build market

Remortgage surge expected to hit new build market

The recent surge in people remortgaging to improve their existing homes could hit the new build property market in 2017, according to The Mortgag Hut's Chris Schutrups.

He says property experts have been predicting a cooling of the market as a result of increased economic uncertainty, which has "been further evidenced by an increase in remortgage applications as more people sit tight and improve their existing home".

Chris added: “The next quarter will see the biggest ever number of people currently on fixed rate deals with their mortgage lender being switched over to the standard variable rate.


“Anyone who is looking to make some savings this year or to cut back on their outgoings will be looking at their mortgage very closely - it is usually the biggest expenditure any of us will ever make. And that amount of borrowing means slight changes in interest rates can have a big effect on monthly payments.

“Remortgaging is a really good strategy for anyone who is looking to save money, cut back on outgoings, or to make improvements to their home, and more people are recognising that they have to shop around to make sure they get the best deal they can.

“Uncertainty is fuelling this behaviour. I don’t think people are really that bothered by Brexit or the Trump effect - the truth is many people are feeling the pinch and have less money than they did have, and more people are concerned about their futures with cutbacks across the economy.

“With interest rates at a record low level they can only go in one direction and that is up. There is already some talk of that during 2017 so the chance to remortgage to a fixed rate and save money is looking increasingly attractive for borrowers.”

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Latest Comments

MBM Homelets
MBM Homelets 23 Mar 2017

Although this is a very positive step, there is little or no guarantee of the standard of workmanship employed by the tenants. We have had experience of a professionally decorated property being ' painted'...

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ajay
ajay 21 Mar 2017

How is the "robust evidence" looking now?

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NathanG
NathanG 20 Mar 2017

I've been watching the series so far and am completely baffled by the cases that were presented. Though, I don't think that we can protect ourselves from every scam possible - it will just make the scammers...

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Landlady14
Landlady14 01 Mar 2017

You would think so Niraj Shah! My experience only proves that there are varying qualitiers of professional in all aspects of property letting. None of the ones I have dealt with, from letting agents to...

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Mark
Mark 01 Mar 2017

Thanks for this article. Hopefully one day everybody's lifestyle will be eco-sustainable.

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Ben Taylor
Ben Taylor 28 Feb 2017

I was convinced that London was the most expensive!

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Alan Read
Alan Read 28 Feb 2017

Australia are leading the way in this I think. The trouble with Britain is we don't get enough sun to make use of solar power.

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James Powell
James Powell 27 Feb 2017

This is a very good news.

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DanHumphreys
DanHumphreys 27 Feb 2017

It sounds like a good idea. Anything to help the younger generation get a foothold.

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Matt
Matt 20 Feb 2017

Is this fake news?

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Matthew Hollywood
Matthew Hollywood 07 Feb 2017

Matthew Hollywood - Director Mishon Mackay Land & New Homes - Brighton The shortage of New Homes is in part effected by the lack of land sales. Land sales are held back because there is a disparity between...

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CommercialTrust
CommercialTrust 30 Jan 2017

Hi Graham, Would be interesting to see the above figure calculated against an investment via a Lt Company /SPV structure and if the investor found themselves pushed in to the higher tax bracket. Mortgage...

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