During the height of the global pandemic and lockdowns an unexpected demand emerged. The lifestyle that was once comfortable and efficient for pre-pandemic living no longer worked. During lockdowns and the switch to working and learning from home there was a need for more space. People were cooking from home so larger kitchens became more attractive. Gyms were closed so there was a need for an area to get fit. Children needed quiet privacy for learning and so did working from home adults. An outside garden area was a plus for families that included children and pets. The high demand for area within and green areas outside was so strong it was dubbed the Race for Space.

The housing market boomed. Hopeful home buyers flooded the market at a time when it was expected they would retreat. Due to businesses being closed and city life basically shut down along with the city offering smaller living areas a lot of people turned to the country or cottage lifestyle.

With lower interest rates, property seekers could afford more than they could before rates dropped. This resulted in pandemic purchased homes being dream home buys. The opportunity was too good to ignore and the housing market had the highest demand ever.

The Bank of England’s Monetary Policy Committee (MPC) dropped the standard base interest rate to almost zero at 0.1%. It was the cheapest borrowing had been in the over 300 years history of the Bank. As cheap borrowing and demand for space collided, the housing market performed at levels that broke records.

Two years ago, there were unique moments in the housing market that had buying surges, but throughout the time there were numerous home buyers and most chose fixed rate mortgages. This meant they were locked into their low interest rate but time has passed and they are soon coming to the end of their mortgage terms. Unfortunately, there are homeowners that will be caught unaware. They will be facing interest rates that for many could result in financial shock. This is especially so for those that stretched their budgets when borrowing was so cheap.

At the end of a mortgage term, the homeowner has a choice of either remortgaging or allowing the lender to move the loan to their standard variable rate (SVR). Remortgaging offers the lower available interest rates as well as the choice of a fixed rate. This is an important feature of remortgaging due to the possibility of the MPC increasing rates further.

The MPC has increased the standard base rate during each of the last eleven consecutive meetings. There was not a meeting this month, but the March meeting resulted in the rate being increased to 4.25%. Inflation was reported as still over 10%, which means the rate has a long way to decline to reach the Banks inflation target rate of 2.0%. More base interest rate hikes are therefore a possibility which makes fixed rate deals a strong choice for saving money.

For homeowners moving off their current mortgage term, it has been reported repayments could increase by hundreds of pounds per month due to the difference in offered interest rates now in comparison to when lenders were offering historically low rates.

Despite the absence of historic low interest rates, homeowners could still save money. Otherwise, they might pay more than necessary. This is why experts encourage homeowners to shop for a remortgage. By remortgaging, a homeowner could not only discover a low interest rate but also with a fixed rate deal shield their finances from further rate hikes.

It is easy to shop for a remortgage online. Visiting the website of a remortgage broker could put many quotes from a variety of lenders in hand to review and compare to find the best remortgage deal. Brokers often have exclusive deals not offered directly from lenders to borrowers. Of course, homeowners could also shop from one lender website to another lender to gather individual quotes from each.

There is no denying that interest rates are no longer as attractive as they were when the Race for Space was in motion, and that the reality of borrowing currently means rates are higher than when the Bank’s base rate was at almost zero. Homeowners coming to the end of their mortgage term are going to be paying more because borrowing is now more expensive.

Saving money through remortgaging is a smart strategy. This is why remortgaging demand is high, especially for fixed rate deals. The good news is that lenders are currently competitive for borrowers and fixed rate deals are not only attractive but are lower in the last few days than only weeks ago despite the March increase by the MPC.

Homeowners involved in home buying during the Race for Space are now encouraged to take part of the Rush to Remortgage. It could mean keeping more money in their household budget and with a fixed rate deal gain peace of mind by being shielded from rate hikes throughout their new term.