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Per customer, the average amount of equity withdrawn through remortgaging fell from £30,361 in December 2015 to £25,955 in January 2016.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 Average equity withdrawn is also 36% higher than January of last year (£19,021).

The total amount of equity withdrawn rose by 23% month-on-month from £774.2m in December 2015 to £951.6m in January 2016. Total equity withdrawn is 87% higher than the £509.8m recorded in January 2015.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

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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bnellyb
bnellyb 08 Apr 2017

There will be an exodus of private landlords over the next 5 years as tax changes take effect, private landlords provide an important service to the rental market, why do housing associations and councils...

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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

It'll be interesting to see how & if the Government's asset sale regarding mortgages helps

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