Remortgaging levels are low but some reports suggest a proportional increase
Reports from CML say that remortgaging is at its lowest level for 15 years, whilst other organisations are interpreting the statistics positively. LMS in particular are reporting that remortgage lending is the highest proportion of total lending since October 2012.
CML data reveals that of the 6.9 million regulated mortgages taken out in 2005 remained active until March 2012, a total of 14% had remortgaged their property with a further total of 2% refinancing more than once.
An estimated 54% of people who have remortgaged since 2005 have withdrawn an average of £39,000 as a result of equity release. Those whose property fell in value withdrew £33,000, while those owning properties that increased in value of up to 10%, withdrew approximately £44,000 on average.
However, according to LMS, CML data also suggests that remortgage lending in April has increased by 17% compared to March, a rise from £2.9bn to £3.4bn. These figures have exceeded total gross mortgage lending, increasing from £11.6bn to £12.1bn, a rise of 4.3% and resulting in remortgage lending now accounting for 28% of the gross mortgage lending total.
Andy Knee, Chief Executive of LMS says:
“People choosing to remortgage at the moment are benefitting from the competitive landscape created by the government’s Funding for Lending Scheme (FLS). The resultant excellent rates from lenders are — as you can see from our figures — fuelling growth in the market.
“We expect to see this upward trend continue over the coming months.”