Mortgages  

Remortgage activity up year on year

The data estimates that the total number of remortgage loans in October decreased by 3.8 per cent to 31,661, compared with 32,900 in September, but despite this seasonal dip, October 2013’s figure is still 8.8 per cent higher than in October 2012.

According to LMS, the average remortgage loan amount has also dropped by 1.4 per cent over the past month, but is still 8 per cent higher than this time last year.

LMS chief exective Andy Knee said: “Remortgage lending is up by nearly 30 per cent compared to this time last year, and remortgage customers are releasing more than £8,000 more cash than they were in January.”

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He referred to a recent LMS survey, which found that approximately 18 per cent of the £21,579 average equity released last month was intended for home improvements, 11 per cent on the repayment of debt and the remaining 71 per cent to go to finance extra spending.

Adviser reaction:

Stuart Inman, director at Hearnden Associates in Surrey, said: “The increases are due to four factors: mortgage deals are the cheapest they have ever been; loan-to-value rates are improving; rates have come down so low that people can afford to remortgage; and, as the economy improves, people are becoming more confident in their jobs and are going ahead with home improvements.”

Key Figures

Monthly gross remortgage lending increased by £26m in October, to £4.73bn, up 0.6 per cent on September’s £4.70bn reported by the CML and 27.7 per cent higher than this time last year.

Total gross mortgage lending rose to 17.6bn in October

Remortgages now represent 27 per cent of the total market

While the total number of remortgage loans in October decreased by 3.8 per cent to 31,661, compared with 32,900 in September, October’s figure is still 8.8 per cent higher than this time last year (29,100)

While average remortgage loan amount has dropped by 1.4 per cent over the past month and now stands at £149,282, this figure is still 8.0 per cent higher than this time last year

Remortgage lending is up by nearly 30 per cent compared to this time last year

Remortgage customers are releasing more than £8,000 more cash than they were in January.