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

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

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MH
MH 13 Apr 2017

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bnellyb
bnellyb 08 Apr 2017

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Fred Cassman
Fred Cassman 07 Apr 2017

"Make it look like you are at home": often people forget this and share on facebook their location!

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jared townsend
jared townsend 05 Apr 2017

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SecomTech
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Jonathan
Jonathan 03 Apr 2017

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MBM Homelets
MBM Homelets 23 Mar 2017

Although this is a very positive step, there is little or no guarantee of the standard of workmanship employed by the tenants. We have had experience of a professionally decorated property being ' painted'...

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ajay
ajay 21 Mar 2017

How is the "robust evidence" looking now?

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