Homeowners are likely to stay put much longer and remain steady in their home versus considering a sale.  House prices are still struggling to regain and without adequate equity in the property it makes it difficult to upgrade to another property or even in some cases to downgrade.  As house prices continue to decline more homeowners are likely to abandon thoughts of selling and look to remortgaging as they resign to remain in their current home.

Halifax data has revealed that for the second month in a row house prices have declined.  The average house price for August was £160,256.  This results in a 0.4% decline in a month to month bases and cancels out any increases in the year putting the average back to a level seen at the end of last year.  Expectations for 2013 are for the housing market to remain flat and recovery to begin in 2014 or even later.

Halifax’s data resulted in a decline while Nationwide reported that house prices had increased in August by 1.3%.  No matter the difference in the reports, for the reality is that the housing market remains weak and homeowners will be sticking more than moving.  For those that do stick to their current property they will find remortgages have become more attractive in the last few weeks.  Lenders have been lowering their interest rates, lengthening the terms of their best fixed rates and they’re lowering the fees with the deals or removing them all together.  How long the lending market will remain competitive and on the side of the borrower is unknown but for those considering a remortgage the time is right to shop around.