Mortgages  

Remortgage values up, but numbers fall: LMS

The firm’s seven-page Remortgage Report revealed that gross remortgage lending during June fell from £3.95bn in May to £3.49bn, a drop of 11.7 per cent.

However the average remortgage loan amount rose by 2.6 per cent, with remortgages accounting for 23 per cent of the overall mortgage market.

The report also revealed that remortgage customers were taking out an average of £22,615, the highest average amount for each individual since January 2012. One-fifth used the money to fund home improvements.

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The report estimated that the total number of remortgage loans in June decreased by 13.9 per cent to 23,316, compared with 27,087 in May. The figure was also down 2.1 per cent on this time last year.

Statistics

£149,514 – average amount borrowed by remortgage customers in June

£3.47bn – gross remortgage lending in June, down from £3.47bn in May

-2.1% – the decline in remortgage loans in June compared to June 2011

Adviser View

Oliver Whitehead, managing director of London-based mortgage intermediary Oportfolio, said: “From our experience the number of remortgages have been steady, with clients remortgaging to avoid reverting to higher standard variable rates. They are looking for better terms.”