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Per customer, the average amount of equity withdrawn from remortgaging rose by 11% from £25,955 in January to £28,685 in February.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 The average amount of equity withdrawn is also 7% higher than February of last year (£26,682).


The total amount of equity withdrawn fell by 7% month-on-month from £859.1m in January to £798.6m in February. Total equity withdrawn is however, almost a third (31%) higher than the £609.8m recorded in February 2015.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

SecomTech
SecomTech 22 Jun 2017

AT Last...This was discussed years ago and there was a move towards landlords registering their bad tenants on a database..(can't remember where) It seems a logical step though our leaders will probably...

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Bertrand
Bertrand 02 Jun 2017

How about the Welsh Govt introducing a scheme to protect landlords against "rogue" tenants who are then taken to court for criminal damage to the properties they trash. Pretty unlikely I suspect and politically...

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AmberMorris
AmberMorris 25 May 2017

"Please don't pick a novelty tune-playing doorbell. They're not 'fun'. They're stupid." Laughed a lot to this. It's actually true, though.

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Oliver Conway
Oliver Conway 18 May 2017

Making a neat inventory is a good idea, but if the seller is not willing to provide it, can the buyer demand it?

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Bertrand
Bertrand 17 May 2017

First step to nationalisation of the private rented sector IMHO. Nanny state poking their noses into things yet again. I object, as a decent landlord, sometimes having to deal with some pretty awful tenants,...

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Izzy
Izzy 16 May 2017

This is such a great a post. I love the detail you've gone into. It's a very useful article for helping those who are looking at deciding which sector they would like to go into! When I first started investing...

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paul burnham
paul burnham 30 Apr 2017

Jeremy Corbyn's pledge that a Labour government would build 500,000 new council houses must electrify the general election campaign. Reliance on markets and the profit motive has brought huge housing-related...

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CommercialTrust
CommercialTrust 28 Apr 2017

Sadiq Khan?s announcement of an online database of landlords and letting agents who have been convicted of housing offences, appears on face value to be a variation of the already implemented Database

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warren
warren 26 Apr 2017

You're very welcome Mary! Glad you enjoyed them :)

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Mary Ward
Mary Ward 26 Apr 2017

Thank you for the wonderful ideas. First impressions can make or break a deal. It's sadly that many homeowners drop the kerb to create an off-street parking space.

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Tony Gimple
Tony Gimple 14 Apr 2017

I'm not at all surprised that so many landlords are still confused about what the tax changes really mean and how it will affect them. In particular, the blind rush to incorporation is leaving landlords...

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MH
MH 13 Apr 2017

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