Tuesday, 1 November 2011

REMORTGAGES RISE AS PRICES FALL

Figures show that the number of remortgages in August were up by 30% from the previous year.

Indications suggest that more people are choosing to remortgage in order to raise money for home improvements. In an unstable market, discontented owners who cannot afford to move home are keen to refurbish their property instead.

It has been suggested that this may be a contributing factor in the slowdown in house prices. This recent trend owes to the high costs involved in moving house and a general lack of confidence in the property market. Home improvements such as loft conversions are placating owners who had been considering a change of address.

As a result, however, housing transactions are slowing down accordingly and prices are falling. In fact, a government housing survey shows that the price of houses in the UK was 1.3% lower in the month of August as compared to August 2010.

Market fragility has encouraged even those who can afford to move to stay where they are and spend their money on redecoration and refurbishment.


Remortgages up by 30% as Homeowners Borrow to Stay Put - BBC News