Should I stay or should I go?
With average house prices now at their highest in eight years homeowners are beginning to tap into this financial resource by remortgaging.
Remortgaging allows a homeowner to change their mortgage lender, typically to get a better rate and lower their mortgage repayments. Remortgaging can also help them release any equity in their home.
As a result many homeowners prefer to remortgage rather than go through the stress of moving house.
Rising property prices
Property prices have been rising steady since March 2013 and last month increased by 3 per cent. The average UK property price is now £205,006. Unsurprisingly the capital has surpassed the national average; London property values increased by 5 per cent in August (£18,573).
Despite the monthly differences however UK and London annual averages have both risen by 7 per cent.
The benefits of staying put
Moving house is widely recognised as one of the most stressful life events. However remortgaging could offer new opportunities as Lynne McCaffrey, Head of Property at Goldsmith Williams, explains:
“One of the most common reasons people move house is because they have outgrown their existing one, perhaps they have started or expanded their family and no longer have enough space.
“However for many the prospect of moving, especially with a young family, is sometimes one they like to avoid. For them, remortgaging could be a more attractive option.
“Many people who remortgage do so to release equity which, in turn, they use for renovation projects and extensions thus allowing their existing property to meet their new needs.”
Content correct at time of publication