Do falling house prices matter to homeowners that are not looking to buy but looking to remortgage?  Yes, for falling prices in the area of your property means that the value of your home is declining.  With declining value there is declining equity in the property.  When a homeowner goes to a broker or lender to secure a remortgage deal, the amount of equity built up in the property is what will help determine the remortgage interest rate that will be offered.

So, it is important that homeowners keep watch on the house prices in their area.  Other than in the London and surrounding areas, house prices have fallen.  Some areas have seen house prices fall by double digit percentages.  According to data from the Land Registry, house prices fell once again in May on the average.  The average house price in the UK is now £161,823, which is 2.2 per lower than the average house price in May of last year.

Despite falling equity levels for homeowners there is one thing in their favor.  Remortgage demand has fallen due to the ease in warnings of an impending interest rate increase by the Bank of England.  This is causing a more competitive environment between lenders.  Lenders are offering better and better remortgage deals to lure in homeowners that are not in a hurry to remortgage without a threat of an interest rate rise.  So, homeowners are likely to find a better remortgage deal offer now from a lender despite a loss of equity.  This is true as long as forecasts remain set on an interest rate hike not occurring in the near future.