Fresh start: Is it time to move or stay put?

After a turbulent few years in the mortgage market, recent signs indicate a turning point as interest rates are finally beginning to ease. For homeowners and prospective buyers, this shift poses an important question: should you take advantage of the lower rates to move, or is now the time to stay put and remortgage?

Mortgage rates on the decline

The Bank of England’s decision to raise interest rates over the past couple of years led to significant increases in mortgage costs. However, as inflation starts to cool and economic conditions stabilise, lenders have begun reducing mortgage rates. Several high-street banks and building societies have already announced lower fixed-rate deals, giving borrowers renewed optimism.

This change presents an opportunity for homeowners and buyers alike. Those looking to move could benefit from more attractive borrowing conditions, while those considering a remortgage may find better deals to lower their monthly payments.

Moving home: Is now the right time?

With interest rates gradually decreasing, many potential movers may see this as the perfect moment to upsize, downsize, or relocate. Lower borrowing costs mean mortgage affordability is improving, making it easier for buyers to secure a mortgage that fits their budget.

However, the property market remains competitive. House prices have remained relatively stable, and demand in key areas is still strong. If you are looking to move, now could be the time to lock in a good deal before demand rises further and prices increase.

Staying put: The case for remortgaging

For those who already own a home, remortgaging could be a smart move. If your current deal is expiring in the next 6 months, securing a mortgage now could significantly reduce your monthly repayments. 

Many lenders are offering competitive fixed-rate deals, allowing homeowners to secure lower payments for the next few years. If you are happy where you are but want to reduce costs, now is an excellent time to explore your options.

Key considerations before deciding

1. Market Trends: Keep an eye on mortgage rate movements and forecasts to determine the best time to act.
2. Personal Circumstances: Consider job stability, family needs, and lifestyle preferences before moving.
3. Lender Offers: Speak with a mortgage adviser to find the most competitive deals. Do not stay with your current lender just because it is easier, because most of the time another lender will offer you a more competitive rate.
4. Fees and costs: Whether moving or remortgaging, factor in legal fees, stamp duty (if applicable), and any early repayment charges.

Conclusion

With mortgage rates coming down, both buyers and homeowners have a fresh opportunity to make a move. Whether you decide to relocate or stay put, the key is to review your financial situation, consider your long-term goals, and consult a mortgage adviser to find the best deal for you.

A fresh start does not always mean moving house. It could simply mean securing a better financial future in your current home. The choice is yours!

Although every effort has been made to ensure that the information provided in this article is accurate and correct, the information provided does not constitute any form of financial advice. We recommend that you take financial advice before making any financial decisions.