Remortgage lending may be helped by the more optimistic outlook of the housing market.  According to Halifax the affordability of housing is the best it has been in the last 14 years.  As buyers come back to the market then homeowners will see their property values increasing and the better remortgage deals will be available to them.  Without buyers in the market property values have fallen and many homeowners have slipped into negative equity. 

Martin Ellis, a housing economist with Halifax, remarked “The falls in house prices and cuts in mortgage rates in the last few years have resulted in a significant improvement in housing affordability for those able to raise the necessary deposit to enter the market.

“Mortgage payments for a typical new borrower are now at their lowest in proportion to earnings since 1997.

“The marked improvement in affordability was a key factor supporting housing demand in 2011.

“The prospect of an exceptionally low Bank of England base rate over the foreseeable future should maintain affordability at favorable levels in 2012.

“This should support the market over the coming 12 months, helping to offset the impact of the downward pressures on demand from the ongoing difficulties faced by households regarding their finances and uncertainty about economic prospects.”

Deposits remain the obstacle for most of those wishing to buy a new property.  For that reason remortgages have been a source for many family members to help out a hopeful buyer.  The economy will prosper with more buyers in the market and everyone is looking forward to their abundant return which will herald a healthier economy.  Most of all homeowners looking for a good remortgage rate are looking for their equity to grow as property values increase again.