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New figures from LMS have revealed that equity withdrawn by remortgaging reached £965.6m in March - a rise of 19% against the previous months £814.7m.

Looking at year-on-year figures, total equity withdrawn is up by 61% from 2015s £600.4m and is the largest amount recorded in the month of March since 2008.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Per customer, the average amount of equity withdrawn from remortgaging rose by 11% from £28,685 in February to £31,887 in March. The average amount of equity withdrawn is also 47% higher than March of last year (£21,755) and is the largest amount ever withdrawn in the month of March.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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Latest Comments

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 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 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 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 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 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 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 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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