Bounce back for remortgage lending
The LMS remortaging survey has shown that after an 18 month low, gross remortgage lending for July was up 13% from June.
The overall figure of £3.5bn is low by historic comparisons and down on the same period last year.
LMS believe that borrowers have been holding back waiting for better deals to arrive.
Those who are remortgaging typically increase the size of their loan, releasing an average of £16,000 equity.
The very attractive sub 3% remortgage deals currently on offer could lead to a bounce back later on in the year.
Andy Knee, Chief Executive of LMS said: “July£¹s remortgage lending is still low in the context of the history of mortgage lending.
“The July value followed a sharp fall in June, itself the lowest remortgage lending figures since December 2010.
"The low monthly figures reflect the fact that many borrowers, already on competitive existing rates, have had little incentive to remortgage.”
Mr Knee said the pick-up was encouraging but unexpected as they had expected Olympic distraction to have a negative impact on the market.