September sees remortgaging fall 12%

September sees remortgaging fall 12%

New data from LMS has found that between August and September remortgages fell 12% from 34,900 to 30,766 - the worst month for remortgaging since the referendum.

According to the report, the value of gross remortgage lending also decreased, dropping by 14% from £5.9bn in August to £5.1bn in September.

Remortgaging accounted for just 25% of total gross lending in September – the lowest amount since March 2016 – when there was a surge in house purchases and buy-to-let activity before the change to Stamp Duty on second homes was introduced.

The dip in remortgaging activity comes at a time when the nation’s economic future appears unclear as the UK approaches the start of formal negotiations to leave the European Union.

Remortgaging frequency has slowed compared to August: up two months, from four years and seven months to four years and nine months in September.


Andy Knee, Chief Executive of LMS said: “The recent weeks and months have been tainted with uncertainty. Since the vote to leave the European Union there has been some doubt and ambiguity surrounding the future of the nation’s economy.

This uncertainty appears to have spread to the remortgage market, with activity at its lowest level since the referendum. Gross remortgage lending and the share of remortgaging in the wider market have both fallen as homeowners put remortgaging plans on hold to wait and see how Theresa May’s government approach Brexit negotiations.

The number of remortgages has fallen as more homeowners remain on their current deals for the time being. Remortgagors are also remortgaging less frequently than a month ago, which is surprising given the current market climate of low rates. Homeowners considering remortgaging should be spurred to act now as mortgage providers may soon raise rates to cover costs stemming from higher swap rates in recent months.

However, it is not all doom and gloom. Annual repayments have fallen again and mortgage rates are at their lowest-ever level. For those homeowners willing to remortgage, there remains plenty of incentive to do so and many could still benefit by remortgaging onto deals with lower interest rates and repayments - 85% of remortgagors did exactly that in September. Reducing monthly payments is something that will be important for many as inflation increases and the price of everyday essentials rise.”

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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

The financial ramifications of the triggering of Article 50, the starting gun for Britain's departure from the EU, are far from clear. Buyers will be most cautious in London, given that buying a home in...

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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

Added to the cost of purchasing these village properties are the above average maintenance costs. Particularly where the property is a listed building or requires specialist building skills such as thatching...

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Jo Mullett
Jo Mullett 07 Jul 2017

Here in Swansea, known as the Japanese knotweed capital of the UK, it never fails to amazes me that people have no idea of the potential problems this invasive non-native plant can cause when buying or...

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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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jason hadzikostas
jason hadzikostas 28 Jun 2017

The most important thing is a budget. Students have to manage their spendings in food, house maintenance, books and many other things. According to me, student Studios are the perfect option for them as...

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