There were 32,873 remortgage loans taken out in June, up 6 per cent from May’s figure of 30,900 loans, according to LMS.
This was also 1 per cent higher than June last year, when there were 32,700.
However, June was the first month in 2016 where the value of remortgage lending fell year-on-year.
Each month this year saw annual increases in the value of remortgage lending, but last month bucked the trend, falling 3 per cent from £5.3bn in June 2015 to £5.1bn this year.
The average amount of equity withdrawn per customer from remortgaging is also less than last year, down 15 per cent in comparison to June last year, when it stood at £34,505.
The average amount of equity released also decreased 13 per cent month-on-month, from £33,691 in May to £29,375 in June.
Annually, the total amount of equity withdrawn has also fallen, by 7 per cent from £1.04bn in May to £966m in June.
This is 14 per cent less than the same time last year, when equity withdrawn from remortgaging hit £1.13bn.
Andy Knee, chief executive of LMS, said while the real impact of the EU referendum will not be seen until July’s figures onwards, it is very likely the small drop occurred as people paused amid Brexit uncertainty before making any decisions.
“Our research into remortgaging habits showed a spike in the percentage of remortgagors opting for a broker to guide them through the process – a sure sign people are looking for answers and stability, something which will continue to dominate in the months after the referendum,” he stated.
“There is some good news, however, for remortgagors that falling repayments, and rising household incomes have taken pressure off families feeling insecure about what the future holds.”
In May, average household income was £45,672, recovering slightly from a 10 per cent fall between March and April.
The monthly increase in income has therefore driven the annual repayment as a percentage of income down from 19.3 per cent in April to 18.4 per cent in May.
peter.walker@ft.com
