Looking back at 2017, house prices showed that the housing market was still capable of remaining strong despite the continued stress upon the economy from Brexit. There are plenty of dreams for household ownership alive and well despite there being few schemes available to first time buyers, house prices remaining higher due to a lack of new properties coming onto the market, and finally the first increase in the standard base interest rate by the Bank of England in a decade which made borrowing more expensive.

First time buyers have been given a break on their stamp duty until April of this year, helping to save them thousands of pounds. That break is expected to bring first time buyers out of hiding and push them to make a purchase before the stamp duty ends. In the past, stamp duty breaks have boosted property sales particularly in the final days of the offer.

More transactions in the housing market will assist homeowners further in building equity in their property. In turn, the built up equity will offer options to homeowners that will likely push up demand for remortgages. More equity can help homeowners qualify for better remortgages, and it can also offer the homeowners the opportunity to turn their equity into cash. The cash can then be used at their discretion to make purchases as they see fit, to pay down debt, to pay for a holiday in the summer, to invest back into the house, or build an emergency fund. The choice is fully theirs as to how to spend the money.

Another reason that remortgages will be in demand in the first quarter of the year is due to the expectation that the Bank of England will increase rates further. To secure a fixed rate that will protect them from rising rates, homeowners will show up to take advantage of current remortgage deals.

Both the housing market and the lending market will be busy in the first part of the New Year, and hopeful homebuyers and those homeowners that could benefit from a remortgage should pay close attention to the opportunities available.