Remortaging drops to new low
The LMS Mortgage report for August has put remortgaging at 25% of total gross mortgage lending.
Total remortgage lending was at £3.17bn, representing the lowest proportions of market share since 1999.
It seems that the market is stalling whilst borrowers wait it out for better deals to arrive.
Given there are currently some attractive 3% remortgage deals on offer it seems like the market should improve over the next month.
The average remortgage loan amount varies considerably across the major regions of the UK with the average remortgage value In London at £221,882, whereas in Wales it was just £92,691.
Regional variations in the frequency of remortgaging are reasonably small, ranging from 5.29 years in the North East to 4.23 years in London.
Andy Knee, Chief Executive of LMS said: “Whilst completion levels last month were disappointing these represent cases that started life some time ago.
“In August we saw a significant uplift in new business and this is now beginning to flow through into completions.
“Therefore September and October are expected to be much stronger months for remortgage lending as customers complete their switches to one of the numerous long term fix rates at below 3%.”
Mr Knee expects a strong year end for the remortgage market and said that the success of schemes such as New Buy would lead to an overall strong end to the year.