There seem to be quite a few factors as to why the property prices in the UK are plummeting recently, especially in London. Stamp duty, second home sales tax and with regards to London in particular, which seems to be declining faster than any other area as well as the whole of the South East, due to in general the property prices, as they are just too high. Of course with Brexit looming and the uncertainty that goes along with it, many are unsure with what will happen once it has happened and what will be the state of the economy. Brexit may also add a levy on for those wanting to purchase who are from abroad. Due to these reasons, a lot of people are wanting to remortgage either to make home improvements (improve, not move), or to (which is the most likely at present), is to find a better deal than that which they have now and possibly move lender or to stay with their current lender but on to a different tariff. If you’re considering a remortgage, it’s important to understand how remortgaging works and the various options. Brexit seems to be the biggest culprit though in prices decreasing and experts predicting further falls in the market, affecting London the most especially if there is a ‘No Deal’ outcome.
Remortgaging is on the rise
With Brexit coming though and the recent interest rate increase from 0.5% to 0.75%, people are looking to swap lenders for a better mortgage deal. Maybe a fixed rate mortgage would be better at the moment and think that is what the majority of people are looking for so regardless of whether the interest rates go up or not, your monthly repayments would not. The best way to find out if a remortgage is suitable for your situation is to use an online remortgage calculator from mortgagearrangers.co.uk. This offers a bit more stability in a time of uncertainty; at least you know what your monthly mortgage payments will be in the upcoming years just following Brexit. Those on variable rates, the monthly repayments go up as soon as the interest rates do, although Bank of England say although they will increase again, they say by not much. To find this better deal, you can go to a mortgage broker who will go through all the options with you from the firms they have on their books and normally for a fee or another way is to look on comparison sites online and finding a deal that suits you that way. These days it can be quite simple and straightforward to do online yourself, therefore cutting out the middle and some fees for yourself.
Borrowers are opting to remortgage for property improvements
Remortgaging seems to be more popular however for those who are thinking of making home improvements rather than moving house due to the uncertain property market at the moment. House prices seem to be decreasing as we said due to a number of reasons as well as Brexit and people are investing more money into their current properties in hope of the property being worth more money when they do eventually go on to sell in the future. All sorts of home improvements can increase the value of your property, especially extensions, but remember to factor in the costs of planning permission and architect fees etc. People are tending to now ‘wait and see’ what happens after March 2019 when Brexit deals should be completed and the UK should be out of the EU, however with the current uncertainty, as we do not even know at present whether that date may now even be extended, the idea of staying put in your house seems better than any other alternative to a lot of people. There are also reports on Brexit that could bring even lower mortgage rates. With regards to London in particular, people are unsure about their jobs as well, which is all having a knock on effect on everything else down the line.