Remortgaging equity hits £965m in March

Remortgaging equity hits £965m in March

New figures from LMS have revealed that equity withdrawn by remortgaging reached £965.6m in March - a rise of 19% against the previous months £814.7m.

Looking at year-on-year figures, total equity withdrawn is up by 61% from 2015s £600.4m and is the largest amount recorded in the month of March since 2008.

LMS also reveals that monthly gross remortgage lending fell to £4.7bn in March 2016, down by 3% from the £4.8bn recorded in February. The value of gross remortgage lending is however, up 8% from March 2015’s figure of £4.3bn.

The number of remortgage loans increased – by 7% – from 28,400 in February to 30,282 in March. This is 10% higher than March 2015 when 27,600 borrowers remortgaged. The number of remortgages rose while the total lending fell as the average loan size decreased: from £158,144 in February to £153,916 in March.

Per customer, the average amount of equity withdrawn from remortgaging rose by 11% from £28,685 in February to £31,887 in March. The average amount of equity withdrawn is also 47% higher than March of last year (£21,755) and is the largest amount ever withdrawn in the month of March.


Andy Knee, Chief Executive of LMS said: “March witnessed a very strong month for mortgage lending as house buyers rushed through purchases before the changes to Stamp Duty for second homes and buy-to-let came into being while remortgaging remained steady.

Over the coming months, speculation about the possibility of a Brexit will continue to dominate news and wreak havoc with the financial markets. However, this should not dissuade people from remortgaging.

Competitive rates mean the affordability of remortgages remains good and homeowners can vastly cut their monthly outgoings or withdraw large sums of money to cover an immediate cost. Latest views from the Bank of England suggest the base rate could fall even further boosting an already positive offering.”

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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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Samantha Goodman
Samantha Goodman 11 Aug 2017

It depends on the people, some older adults decide to make a long-distance move in order to live closer to their children or settle in a place with a lower cost of living.

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brandonlee10
brandonlee10 24 Jul 2017

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IrisJ.
IrisJ. 19 Jul 2017

Great advice, but may I also add that when buying an already built home, make sure you do all of the proper inspections. Most importantly pest inspection because people tend to get surprised when they

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IrisJ.
IrisJ. 17 Jul 2017

The third point is, in my opinion, the most important one. People have become too inconsiderate and careless when it comes to rented properties. If a landlord wants to protect their property, regular visits...

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cornishalan
cornishalan 10 Jul 2017

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Jo Mullett
Jo Mullett 07 Jul 2017

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NathanG
NathanG 05 Jul 2017

McDonalds, for example, have been purchasing their real estate on prime locations for years. If something happens to the company they'll have invaluable assets that will be able to save them. We might

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Jonah
Jonah 04 Jul 2017

Graham: surprised to see you cite the "extra tax liability" as capping out at ?560. It doesn't - the extra tax is exponential, as it is levied on the income (i.e the inflating level of rental income you...

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Dianne Griffen
Dianne Griffen 29 Jun 2017

Be very wary of anyone bringing you deals that they have ?found? and want to ?sell on to you? or ?joint venture? with you on ? you need a proper legal contract for this, involve a RICs surveyor to confirm...

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