Is there anyone that couldn’t use a bit more cash in hand these days? The ability to get more cash might be through a remortgage. Homeowners are seeing the value of their homes increase even while in the midst of a pandemic. In fact, some are seeing the value of their home increased by double digits in just the last six months. The reason that home values are increasing is due to the high demand from buyers in the housing market. The average house price in the UK hit another high last month, and homes are staying on the market for fewer days before finding a buyer. This in turn is increasing the value of properties in the UK.

Some areas are seeing higher increases in value than others. During the recession London was in high demand. Now, due to the pandemic, areas outside of cities are the most desired as well as those considered offering lifestyle perks such as outdoor activities, gardening, or vast green spaces within the community.

With a higher property value there are opportunities available to homeowners, such as qualifying for the better remortgage deals. Lenders use the value of the property to determine the amount of money they will risk in loaning to the homeowner and that is called the loan to value or LTV. For instance, a lender may offer a specific interest rate to borrowers with a LTV of 90% or an even lower interest rate to those with a LTV of 80%. 

Getting access to the lowest interest rate remortgage available is definitely a benefit as currently those that are close to having their two year mortgage deal end could find substantial savings in a remortgage of today. Perhaps thousands could be saved per year during the new remortgage term.

Homeowners also could have the option of turning their built up equity into cash. An equity cash release remortgage offers the homeowner to borrow against the current value of the home and that could mean putting cash into hand. The cash can then be used for whatever the homeowner desires, and lately many have been reinvesting the cash back into the home to upgrade it and make it more pandemic lifestyle friendly. In turn, some improvements in homes have then increased the property value once more.

With low interest rates still available, and competitive deals from lenders, and increasing home values, it might be the right time for a homeowner to consider remortgaging to save as well as put some cash back into their budget or to fund a project. Shopping online for equity cash release remortgages is simple and quick and will help homeowners discover what options they have available.