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

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

You are right that the bank holidays are going to be spoiled in looking for the properties. But people who want to sell their property and looking for the better relocation, they can get benefits of this...

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