Assetz® News - Homeowners prepared to remortgage

Homeowners prepared to remortgage

22nd February 2006 |

New research has pointed to an increasingly savvy nation of homeowners, with 75 per cent considering the option of remortgaging their property.

According to research from The Homebuyer Show, it is a figure that has been steadily rising for three years now and it reflects the increased awareness that most people have about the potential to save money.

Consumer inertia used to be rife in the UK and the vast majority of people were generally satisfied sticking with the same mortgage deal for an extended period. The new data, however, indicates that this is beginning to change, with the number considering remortgaging up by ten per cent from just 12 months ago.

As homeowners and property investors begin to realise that they can save a considerable amount of money by changing policy, the vast majority are also hoping to reinvest their savings in the property market.

While just over 30 per cent will look to gain an advantage by conducting some home improvements, almost 39 per cent are hoping to put the money towards further property investments.

Rising levels of confidence in the property market seem to be responsible for this as illustrated in the discovery by the National Association of Estate Agents that property sales increased by 20 per cent in January.

On the other hand, a challenging 2005 for many in the property market has meant that this undeniable buoyancy is being sensibly balanced by an attention to detail and a desire to get the very best possible deal.

Nick Clark, managing director of The Homebuyer Show, has suggested that keeping an open mind in relation to remortgaging is by far the best policy and he has suggested that the advantages can be significant.

"Shopping around for a better deal on your mortgage has become increasingly common for both homeowners and professional investors," he said.

"Increasing levels of debt have had a knock on effect on the industry, with owners realising they don't have to stick with their current provider once the initial special offer period has run out."

This kind of financial apathy is becoming extremely rare while financial nous seems to be particularly evident among those in the property industry. The difference between making small and substantial profits from property can come down to seemingly marginal decisions and Mr Clark has emphasised the importance of seeking expert advice on this very topic.

"Lenders often bring out attractive deals for new borrowers but leave existing borrowers paying higher interest rates. By swapping to a more competitive mortgage deal homeowners can decrease their monthly repayments, and even release some capital to reinvest or to fund home improvements. Locking into a fixed rate deal at a time when rates are historically low can also provide reassurance for the future," he suggested.

The evidence from The Homebuyer Show clearly demonstrates that property owners in the UK are now prepared to spend the extra time required to make the maximum returns from a property and experts agree that it is a trend that will continue to build in the future.