Will there be a remortgaging boom in 2022?

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Will there be a remortgaging boom in 2022?

2020 saw people working from home. It wasn’t always perfect, with dining tables and corners of rooms transformed into home offices, needs must. As a result, people needed more space and the housing market boomed.

2021 saw people still working from home having either found a work-home balance that worked for them or simply no longer had offices to return to. With this came the realisation for many people and families that they needed to move – either out of the city, into the city or just to somewhere bigger or borrow more to extend and transform their existing properties

But what will happen in 2022?

According to UK Finance, remortgaging activity is set to increase this year with a predicted £69b set to be lent – this is an 11% increase on what was lent in re-mortgaging loans in 2021.

This predicted growth is due to a couple of factors:

Firstly, due to the strong housing markets in 2017 and 2020, people who successfully obtained a mortgage during these years will be due to come out of their two or five year fixed deals. This means that by remortgaging, many of these homeowners will still be able to get better rates.

Secondly, with household debt on the rise especially with an increase in living expenses, homeowners may decide to re-mortgage in order to pay off or consolidate debts.

Shaw Financial Services founder Lewis Shaw says:

‘There’s going to be a vast amount of remortgaging taking place along with a lot of debt consolidation as people scramble to wipe the slate clean and bring their finances to heel.’

‘The chances are we’ll see further base rate rises and the damage of COVID will begin to show.’

‘It’s really not going to be pleasant, but with a little bit of planning and some sensible mortgage advice most people should be ok, if not a little worse off due to the inflationary pressures that both Brexit and Covid have brought.’

 

If you feel a re-mortgage could be something you would like to explore further, please get in touch with our friendly team who will be able to assess and help establish what are the best options for you – contact the team on 01536 411 144.

There are implications of debt consolidation. You will be taking unsecured debts to secure against your home and you may end up paying more interest due to the length of the mortgage term.

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