At the moment, the housing market seems to be in the doldrums and potentially heading for the buffers. Things will change in due course, but it's frustrating for the prospective homebuyer and seller.
There is so much happening around the world and domestically that it's almost impossible to predict what is going to happen in the next couple of months, let alone a year or so down the line.
The impact of the Middle Eastern conflicts, especially with the Strait of Hormuz closed and strictly monitored, means that the price of oil is going up significantly. This has a direct impact on prices in the shops, which, in turn, means that the average family's disposable income is becoming increasingly limited.
One of the first casualties of the increasing prices is the homebuyer's plan to move to a bigger home, perhaps with a larger garden and more rooms to help with a growing family. Instead, families might decide to make do with what they've got, however frustrating that might be, until the economy bounces back and they feel freer to invest in a more expensive property.
But does that need to be the end of it until a few months or years later when they feel more financially comfortable?
One option to consider is taking out a remortgage. A remortgage means taking out a loan with a mortgage lender, essentially to take advantage of the equity that has built up in your property to date or to get a better deal on the mortgage products available.
The three main reasons for remortgaging
Securing a better interest rate. Mortgage lenders establish new mortgage products all the time with variable, tracker or fixed rates. When one of these deals comes to an end, you might want to remortgage to select a more favourable deal rather than simply being transferred on to the lender's choice, which might not be so financially advantageous to you.
Changing mortgage terms. You may want to move from a variable rate to a fixed rate, change the term of your repayments, or simply receive greater flexibility in these straitened times.
Releasing equity. This option allows you to gain access to a lump sum using some or all of the equity the property has built up since you bought it. You could use this to develop the current property, take a holiday, buy a car, renovate the kitchen, or anything else you want to do with the funds.
Releasing equity is also worth considering if you've suspended or abandoned plans to buy a bigger property. You could, planning permission allowing, add extra rooms to your existing home instead, which might be a financially safer approach.
Do you need a conveyancer to remortgage?
Bear in mind that there might be a legal involvement required. The conveyancing process is essentially there to transfer ownership from existing owners to the new. The same applies for mortgage lenders, who, after agreeing to a remortgage, will necessarily be part-owners of the property.
However, if you are taking out a remortgage package with the same lender you are currently borrowing from, no ownership is changing, so you won't need a conveyancing solicitor.
Talk to Homeward Legal
Whatever your plans, whether you're selling up, buying a new place or need a conveyancer to manage your remortgage, you'll need effective legal representation to ensure everything is handled as quickly and efficiently as possible.
Our conveyancers at Homeward Legal will start work on your plans as soon as you agree to the quotation and appoint them to represent you.
Call us now on to get your conveyancing quote started, or to discuss your concerns about your plans to move.
Or you can get a quick quote using Homeward Legal's easy-to-use quote generator.