The UK housing market is not to be discounted in its ability to stay resilient. Not Brexit nor a global pandemic could tear it down or hold it back. Even in a global pandemic it not only stayed afloat, but it also left forecasters scratching their heads as they watched their expectations fall like ashes amidst the burning demand in the market. Hopeful home buyers are going to find a way, no matter the short-term challenges that a bump in the economy might bring.

Inflation and the resulting higher interest rates may have put a strangle hold on budgets and the ability to save for a deposit, but there are creative paths to homeownership for those determined. It has been reported that many first-time buyers have extended their reach beyond the Bank of Mum and Dad. Friends, aunts, uncles, and grandparents are assisting these days. Also, due to the confidence building DIY videos on social media, many are shopping homes others have overlooked due to their affordability and future potential. The dream homes of the pandemic might not be in reach, but a little sweat equity and patience will make it a reality.

Despite the forecasts of a possible downturn in the housing market for the end of the year, the UK average house price increased again in November. It is the third consecutive increase to an average of £258,557. It should be noted that despite the increase, it still fell short of the average for November 2022 by £5,231.

The monthly increase from October to November amounted to 0.2%. This followed the 0.9% increase reported for October and the 0.1% increase for September. The November increase of 0.2% is unexpected as there had been a forecast of at least a 0.4% decline in the average house price for November. 

The data, released by Nationwide, the largest building society in the UK, brings relief to homeowners fearing a slide into negative equity. Increased house prices can translate into an increase in property values. By avoiding negative equity, where a property value declines below the debt held on a property, homeowners are better assured they might remain within reach of a highly coveted remortgage.

As the lending market, which has grown more optimistic due to the decline in inflation, has grown competitive. This unexpected turn of events is becoming a launching pad for homeownership dreams that could have been put aside had economic circumstances been only slightly different. However, it is indeed more optimistic right now with inflation moving downward, and lenders are seeking the attention of borrowers that are sure to take notice.

Many lenders have put out offers below the level of the Bank of England’s standard base interest rate of 5.25%. It is truly a turn in lending that few could have predicted and the opportunity to save money is not something to push aside. The current rates could just as quickly increase, especially with the political and economic unrest occurring elsewhere putting the global economy into strain.

The Bank’s Monetary Policy Committee (MPC) has offered calming words of a possible peak base rate being reached at 5.25%. The threat of looming rate hikes being removed and even hints at a rate cut in 2024 speaks volumes to consumers just as it does to economists, lenders, and government officials. The year started with inflation in double digits at 10.1% and was last reported at 4.6%. While consumers will not feel the shift in inflation immediately, there is hope it will come soon, and perhaps as it calms the expectations of even further rate hikes, that is enough for now.

Home buyers are not the only ones discovering better rates from lenders, homeowners are enjoying the ability to shop for better interest rates as well. The boom of the housing market in 2021 was followed up by buyers taking their last opportunity to secure a low rate as the MPC hiked the base rate meeting after meeting in 2022. Many two-year fixed rate mortgages were approved and those will be coming to an end in 2024. 

The expiration of a mortgage fixed rate term will end the deal and the interest rate, leaving the homeowner to transition to the lender’s risky and often much higher standard variable rate (SVR) or the opportunity to avoid a SVR and save money with a remortgage. There are not as many lenders offering remortgage deals below the base rate as there are mortgage deals, but certainly there are attractive remortgage offers.

Because shopping for a remortgage is easy and quick to do online, homeowners already moved to their lender’s SVR, those that are nearing the end of their term, and even those considering a penalty fee to end their term early and take advantage of current rates could benefit from gathering remortgage quotes to review and compare. 

A few minutes spent on the website of a remortgage broker could result in numerous quotes from a variety of lenders and possibly exclusive deals not offered directly from lenders to borrowers. There is always the option to go from website to website of lenders to gather quotes as well.

With remortgage quotes in hand, homeowners could determine if now is the right time to remortgage or use the information to create a strategy for the months ahead. Most homeowners have the ability to remortgage six months before their term expires without taking on a penalty fee. 

No matter that the housing market isn’t as robust as it was in the past two years, it is still showing forecasters that the dreams of homeownership in the UK are not to be dismissed. Where there is a will, there is a way, and the UK housing market keeps finding ways to surprise those that bet against its resilient nature.