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Increase in remortgaging

edited 30 November -1 at 1:00AM in Debate House Prices & the Economy
6 replies 133 views
Nebulous2Nebulous2 Forumite
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edited 30 November -1 at 1:00AM in Debate House Prices & the Economy
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

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  • chucknorrischucknorris Forumite
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    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.
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  • HerzlosHerzlos Forumite
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    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.
  • michaelsmichaels Forumite
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    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?
    I think....
  • edited 17 May 2019 at 11:35PM
    phillwphillw Forumite
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    edited 17 May 2019 at 11:35PM
    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.
  • michaelsmichaels Forumite
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    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.
    I think....
  • PasturesNewPasturesNew Forumite
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    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.
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