Remortgaging bouncing back
Monthly gross remortgage lending increased by £276m in September to £3.18bn, up 9.5% on August’s £2.90bn.
Total gross mortgage lending fell to £11.6bn, down 10.1% on August.
Commenting on the results, Andy Knee, Chief Executive of LMS said: “Notwithstanding the considerable increase in September, in historic terms, the remortgage lending figure is still relatively low.
“In our last Remortgage Report, we accredited the low remortgage lending figures to borrowers holding back, waiting to take advantage of the current very attractive 3% mortgage deals.
"This theory is reflected in the rise in remortgage activity that we have witnessed in September.
“Competitive remortgage deals, combined with future prospects of tighter mortgage pricing, due to the government’s Funding for Lending Scheme, leads us to expect sustained improvements in the remortgage market for the remaining months of this year.”
The average remortgage loan amount has risen by over £2,000, to £137,437 in September, the highest it has been since the beginning of the year.
This figure continues to vary considerably across the major regions of the UK, with the average remortgage value in London at £227,277, whereas in the North East it was just £95,270.
LMS expects a continued rise in the number of remortgages in the next few months as the market comes back from rock bottom.