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New Build Market Expected to Experience Surge in Remortgages

The Mortgage Hut has recently predicted that the new build property market could be hit by the recent surge in homeowners remortgaging to improve their properties.

According to representative Chris Schutrups, property experts have been predicting a slowdown of the market as a result of economic uncertainty, which has been further evidenced by a rise in remortgage applications as more people remain in place and opt to upgrade their current home.

Mr. Schutrups added that the next quarter will see record numbers of people presently on fixed rate deals with their mortgage provider being changed to the standard variable rate.

He pointed out that anyone seeking to save funds this year or reduce their outgoing expenses will be examining their mortgage more closely, as it is generally the largest expenditure that any homeowner will ever make. The amount of borrowing means that even if they can achieve slight changes in interest rates, it will in turn have an impact on monthly payments and the overall figure repaid.

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According to Mr. Schutrups, remortgaging is a recommended strategy for any homeowner who is seeking to save money, reduce outgoing expenses, or carry out home improvements, and more people are realising that they have to look around to ensure they get the best possible deal.

This behaviour is being fueled by uncertainty. Mr. Schutrups did not believe that UK residents are truly bothered by Brexit or the election of US president Trump. He stated that many people simply have less money than they had in the past, and more people are concerned about their futures, with the results being countrywide cut-backs.

With interest rates at an all-time low, they can only go up. Mr. Schutrups said that there is already some discussion of this happening during 2017, so the opportunity to remortage at a fixed rate and save money has a decided appeal with some borrowers.

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