As homeowners struggle to gain remortgages due to their lack of adequate equity it is only fitting to question as to when house prices might rebound so that equity begins to build rather than disappear.  There is still however the lack of buyers in the market enough to boost the property values in the UK other than in London.  London has not suffered the decline of property values as has occurred in other regions.  In fact there has been a steady rise in house prices as investors stay interested in purchasing properties in the capital.  The average London house price has helped balance out the overall UK average to reflect less dismal averages on most month’s data reports.

Buyers are not returning to the housing market and most blame is placed on their inability to get approval for a mortgage.  Mortgage interest rates are at record lows from many lenders but deposit levels required make the opportunity out of reach for most hopeful buyers.  Still others put blame on the high criteria to meet an approval by most lenders as the blockage to home ownership.

According to a recent report the hardship on household budgets is making it difficult to save for a mortgage deposit.  The Yorkshire Building Society estimated that households must save for 8.5 years before they can gather the needed deposit to purchase.  The survey revealed that 56% of the potential property buyers polled were concerned with being able to gather their deposit, 40% were put off by what they believed were still too high house prices, and 16% were concerned with their credit history keeping them from obtaining a mortgage approval.

Experts estimate that it could take a decade for house prices to rebound.  Homeowners should not sit out the opportunity of a low interest remortgage waiting for their equity level to rebound in the near future due to rising house prices.  Shopping around could offer a cheap remortgage despite it not being the lowest interest level obtainable due to a lack of equity.  Rather than looking only to the lowest interest rates available and feeling cut off from the lowest rates homeowners should consider that the ones available are still attractive and worth consideration.