The UK economy has a long road ahead of it to recovery according to many experts.  There will remain a very stifled housing market with few buyers coming in to find their first home.  That means there will be very few looking to take on a starter home which would allow a homeowner to sell and move upward on the property ladder to a larger property.  The end result could be that many homeowners will be staying in their starter homes longer and seeking out remortgages to help them upgrade their own property versus moving to a new one.

Without buyers in the market homeowners that want to sell are going to have to take aggressive cuts in their asking prices.  At least this is the norm in areas where house prices have been declining due to the lack of demand in the market.  Instead of selling, homeowners are seeking to hold onto their property longer, make improvements and upgrade their own property and thus increasing its overall value and potential selling power in the future when the market has recovered.  A remortgage can help a homeowner make this longer commitment to the property and provide a cheap interest rate at the same time.

Remortgage interest rate levels are still very competitive and homeowners are benefitting by being able to choose between fixed rate remortgages and tracker remortgages that have very little of a gap between them.  For a homeowner that had hoped to upgrade but failed to find a buyer perhaps a remortgage could help them find the upgrades they wanted in their own property and provide a sound investment in the future at the same time.