The problems in the eurozone are liable to both have a financial impact on the UK economy as well as possibly selling more properties in the London area to keep the average house price in the UK afloat.  The pull out of Greece from the euro is being discussed as a hit to the global economy on the same level as the Lehmann Brothers collapse in 2008.  In relation to the housing market it is expected to both make mortgage lending tighter, interest rates on offerings of both mortgages for purchase and remortgage to move upward, and for investors to enter the market to invest in property that has a potential to offer them gain on their investment money.

Miles Shipside, director of Rightmove commented on the problems in the eurozone saying, “If Greece defaults then the knock-on effects could be a further reduction in mortgage availability and weakening consumer sentiment causing even more potential buyers to sit on their hands.

“With overall market volumes already in the doldrums, we need a fair and consistent wind of mortgage lending to prompt a speedier housing market recovery.

“Ironically, London property could become an even more popular safe harbour for foreign cash in stormy times, further widening the gulf between the capital and the rest of the country.”

For those seeking a remortgage in the near future the current remortgage offerings are liable to be much different from the ones offered from lenders should the eurozone continue to see problems.  The cautious outlook of lenders is pushing them to remove their cheapest offerings and replace them with slightly higher interest rates and that includes remortgage offerings.