According to May 2018 data from the Royal Institute of Cratered Surveyors (RICS) house prices fell at their biggest rate since 2012. This has put off many people from selling their house and moving to a new one.
The largest fall in house prices has been in London, but the South West and South East of England have also seen property prices decrease.
Instead of leaving, many people have decided to improve their current home. If the reason to consider moving was to go to a bigger house people are building extensions instead. Second charge bridging loans or remortgaging can provide the funds to do this work.
Other homeowners want to improve the standard of their properties but without necessarily enlarging them. This can involve expensive building work such as knocking down partition walls to make a larger room, adding a new bathroom or installing a new kitchen. Older homes may need renovations such as a new roof.
If the owner has enough equity in their home, remortgaging can provide funds for renovation work or extensions. If the loan is only needed for a short period, then bridging finance could be the solution.
Another option in a slow housing market is to keep the home and remortgage it to purchase a small house or flat. The original house can be let to tenants to create a regular income. This will usually require a buy to let commercial mortgage and the owner needs to be up to date on residential property landlord regulations.