As if our Christmas and Holiday plans couldn’t have changed anymore, Remortgage plans may be altered before Christmas
As if our Christmas and Holiday plans couldn’t have changed anymore, Remortgage plans may be altered before Christmas according to the latest remortgaging figures. Given expected changes in early repayment charges and stamp duty rules, homeowners and lenders may have to make operational changes throughout the Christmas period.
Homeowners usually have the ‘option’ to Remortgage, which involves taking out a new mortgage on a property already owned by them. This is done to replace an existing mortgage with a better deal.
According to their latest ‘Monthly Remortgaging’ Report’ in the Doncaster region, homeowners who have Remortgaged in September 2020 saw their average payments decrease by £200.76 each month.
House Prices rose in September 2020, the fastest pace seen for four years, according to Stephen Kerrigan, owner of MortgagesRM – Doncaster Fee Free Mortgage Advisor. Reportedly, this was due to the demand from home-movers that were out stripping the supply of available properties.
The same report from Mortgages Remortgages revealed loan sizes are increasing and Stephen Kerrigan, Doncaster Fee Free Mortgage Advisor, commented on why that might be:
We are seeing many Doncaster and South Yorkshire homeowners increase their loans, potentially for home improvements, but it also appears that due to the pandemic, some are seeking financial help due to the Coronavirus Lockdown, and others are looking for new homes, which has driven up the prices.
Remortgages Altered by Christmas
It’s unlikely that the housing market will remain immune to the tough external factors, and the stamp duty holiday granted by the government is likely to be a significant factor in increased recent activity.
As Christmas approaches, borrowers are looking to move before the holidays, with the first spike of the home moving market aimed at Christmas this year, and the second aimed for March 2021 when the stamp duty exception comes to an end.