Increase in remortgaging

Nebulous2

An increase in people remortgaging and withdrawing cash. Average additional borrowing £55,700. Are we going back to the old days? I guess we'll see an increase in people hitting retirement with substantial mortgage debt.



http://www.cityam.com/277715/uk-remortgaging-rate-jumps-owners-cash-low-interest-rates

chucknorris

Nebulous2 wrote: »

An increase in people remortgaging and withdrawing cash. Average additional borrowing £55,700. Are we going back to the old days? I guess we'll see an increase in people hitting retirement with substantial mortgage debt.



http://www.cityam.com/277715/uk-remortgaging-rate-jumps-owners-cash-low-interest-rates

I read the article just to check something out, and the article confirmed my suspicion:

"The 9.1 per cent rise in additional borrowing remortgages compared to a year ago reflects the fact that a lot of people are choosing to add value to their existing homes rather than move,” he said.

Stamp duty, estate agents, solicitors and other fees make extending a viable option for many.

Herzlos

Yeah I'd assumed a lot of people would be using the money to extend/upgrade rather than move. That usually increases as house prices stagnate.

£50k should add another couple of rooms on the back.

michaels

What is happening to average mortgage debt per property? With a sluggish sales market doent mortgage debt tend to fall, especially with io now a niche product?

phillw

michaels wrote: »

What is happening to average mortgage debt per property? With a sluggish sales market doent mortgage debt tend to fall, especially with io now a niche product?

last year it just recovered to pre 2008 GFC levels. It was up in February (I've not seen anything newer).

Non mortgage debt is up to £15k, which is insane.

michaels

phillw wrote: »

last year it just recovered to pre 2008 GFC levels. It was up in February (I've not seen anything newer).

Non mortgage debt is up to £15k, which is insane.

Could ultra low mortgage rates be the issue? I have 6 figure mortgage debt which I could pay off but don't because I can get more interest on the same amount saved than I would save by paying it off.

PasturesNew

Moving, especially in a quiet/unpredictable market, is so much hassle and cost.... for many, if their current house can be "knocked about a bit" to become closer to what any new house would've provided them with, it's a better option.

I first thought of extending my house, then realised that it'd not make my worst features go away .... so I am now selling/moving - and, by God there's some rubbish out there for sale... if my current house could have been made to be "just what I want" I'd have built/stayed.