Remortgaging surge results in seven-year high

Remortgaging surge results in seven-year high

According to new data from LMS, gross remortgage lending rose to a seven-year high of £6.2bn in January - a 49% monthly rise.

This is the largest value of remortgage lending in a month since November 2008, when £7bn worth of loans was recorded. The value of gross remortgage lending is also 45% higher than January 2015’s figure of £4.3bn.

The number of loans also increased by 44%, from 25,500 in December to 36,666 in January. This marks the highest number of remortgage loans taken out since July 2009 when 39,500 loans were recorded.

Per customer, the average amount of equity withdrawn through remortgaging fell from £30,361 in December 2015 to £25,955 in January 2016. However, this is still the largest amount recorded in the month of January. Average equity withdrawn is also 36% higher than January of last year (£19,021).

The total amount of equity withdrawn rose by 23% month-on-month from £774.2m in December 2015 to £951.6m in January 2016. Total equity withdrawn is 87% higher than the £509.8m recorded in January 2015.


The average remortgage loan size hit an all-time high of £170,319 in January, up 8% from December and 12% year-on-year.

Andy Knee, Chief Executive of LMS, said: “Remortgage lending bounced back in January, hitting seven-year highs as we hit the ground running. Although the month-on-month growth in remortgaging can be partly attributed to a seasonal uplift and a New Year financial spring clean – as well as a Stamp Duty panic – other factors are working in favour of the market.

With rising house prices, interest rates at historic lows and a host of competitive products available to choose from, growth is likely to continue even after the Stamp Duty panic dispels. Swap rates are also expected to decrease in mid to late February, lowering the lenders’ costs of loans further and boosting competitive offers.

Mark Carney’s indication that the Base Rate will stay low for a while longer means borrowers will continue to enjoy great rates. On top of that, the shadow of a Brexit and global economic uncertainty looms on, precluding a Base Rate rise. However it would still be advisable for savvier borrowers to lock into low rates to maximise their cost savings.”

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AbbieP.
AbbieP. 22 Jul 2016

"While house prices in the most expensive eleven boroughs have declined values in the cheapest eleven boroughs continue to rise" - not a nice way to even out the price range. London is overrated as it

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AbbieP.
AbbieP. 21 Jul 2016

And try to profit from your decisions, I may add

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CommercialTrust
CommercialTrust 19 Jul 2016

Retirement investment has always been one of the biggest draws of buy to let. And the buy-to-let demographic is, on balance, older. (Over a third of our applicants are over 50 at the time of application.) It...

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Forrest Wheatey
Forrest Wheatey 11 Jul 2016

I find the time perfect for ever home-owner wannabe. Prices should slowly, but steadily drop, at least for the inner buyer. Making it harder for outsiders to buy properties (the whole Brexit thing means...

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property guru
property guru 11 Jul 2016

Why should Ajay even have to be looking for it. It should be public knowledge. Why is not just publish each years and to were it is and be AUDITED. Accountability.

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property guru
property guru 11 Jul 2016

Surprise suprise

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CommercialTrust
CommercialTrust 30 Jun 2016

This is great news for buyers and investors in a period of significant uncertainty. The 10-year buy-to-let fix at 3.99% in particular is excellent, a clear 100 bps ahead of the nearest competition. Though...

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Lee
Lee 30 Jun 2016

Let's see what happens to north-east property prices when Nissan announce they're leaving.

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DmitriKara
DmitriKara 29 Jun 2016

I just read another article about eviction rising and this was exactly what was on my mind, Housing has become "cat and mouse"...

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DmitriKara
DmitriKara 29 Jun 2016

I am really not surprised. I've seen one too many impudent tenants and in my humble opinion renters have one too many privileges and options to abuse heir landlord in so many ways...

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DmitriKara
DmitriKara 29 Jun 2016

There is still so much uncertainty and I will surely step back and see what's happening before I could make any decisions on my end.

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ChristinaReedUK
ChristinaReedUK 20 Jun 2016

I don't understand why it's always a war between the two sides. Either, way the landlord is probably keeping a detailed inventory and will see the changes you've made. I just don't understand why there...

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