Time to remortgage?

The cost of the average British home now stands at £354,564, according to property website ‘Rightmove’. Homeowners have increased prices by 1.7% or an average of £5,760 in March equating to the biggest Spring price increase since 2004.

Sellers are using the current shortage of property and the rush of buyers to purchase before potential interest rates rises to maximise the price they are looking to achieve.

The effect of consecutive rate rises on house prices

The Bank of England last week made its third consecutive increase to the Base Rate since December 2021, to now stand at 0.75%. Despite this, 1 in 5 purchases are being agreed within a week of the property being marketed.

Many market commentators expect the run-away price increases to cool in the second half of the year, according to Rightmove, as economic headwinds take their toll on personal budgets.

Cleerly Director Andy McBride commented “3 consecutive base rate increases and more expected the cost of borrowing is likely to continue rising. This in combination with inflation and cost of living increases is likely to dampen house prices later this year”

Review remortgage rates now

McBride continued “A number of clients appear to be switching their thoughts to extending and improving their current homes instead of looking to upsize. Now seems to be a very opportune moment for homeowners to review their mortgage rates as property values are at their highest and there are still some very attractive remortgage options available for those looking to simply switch rate or borrow more funds”.

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