February sees remortgaging at 7 year high

February sees remortgaging at 7 year high

According to new figures from LMS, despite a 24% decrease against January, remortgage lending reached £4.4bn in February. This was the largest amount recorded in the month of February since 2009.

The LMS data revealed that the value of gross remortgage lending is also more than a quarter (26%) higher than February 2015’s figure of £3.5bn.

The number of loans also decreased – by 16% – from 33,100 in January to 27,840 in February. This is still 23% higher than February 2015 when 22,700 borrowers remortgaged.

Per customer, the average amount of equity withdrawn from remortgaging rose by 11% from £25,955 in January to £28,685 in February. This is the largest amount recorded in the month of February as borrowers continue to take advantage of rising house prices and competitive rates. The average amount of equity withdrawn is also 7% higher than February of last year (£26,682).


The total amount of equity withdrawn fell by 7% month-on-month from £859.1m in January to £798.6m in February. Total equity withdrawn is however, almost a third (31%) higher than the £609.8m recorded in February 2015.

Andy Knee, Chief Executive of LMS, responded to the figures: “Despite a drop in activity from January – a trend we’ve experienced each year since 2010 – remortgage lending in February remains buoyant. The value of loans were the largest amount recorded in the month of February for seven years, demonstrating maintained momentum for remortgaging as we return to a healthy, post-recession market.

New rock-bottom rates should encourage even the most hesitant of homeowners to consider the benefit of remortgaging, since huge savings can be made.

However, there’s a push and pull occurring in the remortgage market at the moment. On one hand we have enticing, rock-bottom rates, and on the other, a looming uncertainty compounded by the possibility of a Brexit and the shaky global economy. On the whole, the industry is in agreement that the housing market is unlikely to be unduly affected in the lead up to the EU referendum, although there might be a slight slowdown in house price growth. This means we expect remortgaging growth to continue but we shouldn’t expect a drastic change in activity until after June 2016.”

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Kelvin Lloyd
Kelvin Lloyd 09 Oct 2017

IT is up, to the Planners. If they will only give permission for bungalows on certain (suitable) sites, they will be built.

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maggie swift
maggie swift 09 Oct 2017

It's just the beginning of the shocking rise.

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maggie swift
maggie swift 09 Oct 2017

I have recently read that the bungalows can provide social housing for elderly residents in London.

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zoe glover
zoe glover 05 Oct 2017

Update! Worst company I have ever dealt with. Undervalued a Cambridge property by over 100k, wont take on any evidence of valuation including a RICS valuation done 3 years ago for the very same value...

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Paul Edwards
Paul Edwards 27 Sep 2017

Its nonsense articles such as this that make it harder to get clients to realise just how difficult the market is out there. When you see Rightmove and there are more 'price reduced' then 'new' most days...

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Tom Allen
Tom Allen 20 Sep 2017

Absolutely agree with you!

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RyanGeo
RyanGeo 18 Sep 2017

A sharp correction would be a less dramatic expression to use. That is already underway in certain sectors in Reading where I practice as Chartered Surveyor

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sean benton
sean benton 01 Sep 2017

Identity theft is a thread for any profession. So,people should stay alarmed. I once take help from a letting agent and came to know that letting agents are taking every precaution to prevent fraudulent...

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Mark N.
Mark N. 30 Aug 2017

We have seen a surge in instructions over August and that should continue into September too.

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Chris
Chris 30 Aug 2017

Unfortunately, all the legislation bears its force on Landlords and ignores, naively, the effect of Rogue Tenants on the ability of landlords to keep houses in repair and offer properties for rent at reasonable...

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Christian Donovan
Christian Donovan 18 Aug 2017

The write-down on house values, combined with the fall in the GBP saddled the fund?s property portfolio with a 1.4% loss in the second quarter. The shocking amount of $240 million.

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Samantha Goodman
Samantha Goodman 11 Aug 2017

Interesting point of view.

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