Remortgage lending at highest level in 8 years

Remortgage lending at highest level in 8 years

The latest report from LMS has revealed that the value of remortgage lending rose "spectacularly" by 23% from September's £5.5bn to £6.8bn in October.

According to the data, the value of remortgage lending in October is the highest since November 2008 and represents an annual increase of 19% from £5.7 billion in October 2015.

LMS reported that the number of remortgages increased by more than a quarter (26%) from 31,500 in September to 39,547 in October to its highest level since January 2009 and say the revival in remortgaging activity comes as homeowners look to lock into record-low rates and in anticipation of a rate rise in 2017, amid continued political and economic uncertainty as a fall-out of the vote for Brexit.

The frequency of remortgaging also accelerated in October. The average term of a remortgagor’s previous mortgage fell by 12% or seven months to 4 years and 2 months. Annually, the average term of remortgagor’s previous term also dropped by 7 months from October 2015. This is the most frequently people have remortgaged since March 2009.


Andy Knee, chief executive of LMS, said: “The remortgage market has enjoyed a revival since September’s post-Brexit low. Homeowners are remortgaging at levels that have not been seen for almost eight years, when the recession hit, while the frequency of remortgaging is at a seven year high.

There are several key driving forces behind this revival. Some of this is seasonal. In the run-up to Christmas, families are looking to tighten the purse strings, reduce their monthly bills and prepare for the festivities. But last year, we only saw a 7.5% rise from September to October – this is of a different scale. Record-low rates are providing the perfect opportunity for homeowners to remortgage and secure monthly savings on their mortgage bills.

Another factor is that homeowners are cautious of what the future may hold. Political and economic uncertainty stemming from June’s EU referendum result have affected people’s priorities. Families are seeking long-term security. While we wait for the outcome of Brexit negotiations, some homeowners are locking in low rates and fixing their monthly repayments.

But perhaps the most important factor is the current anticipation of a rate rise in 2017. LMS found that 23% of remortgagors in October expect a rate rise to occur in the New Year. Coupled with ever-increasing uncertainty, the likelihood of a rate rise next year has convinced some homeowners that now is the time remortgage.”

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Latest Comments

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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