Londoners on the look out for best remortgage deals reveals LMS

Homeowners in London who have the largest property debt are remortgaging more frequently than any other region as they look to manage their costs, reveals LMS.

LMS, one of the UK’s largest remortgage specialists, reports that property owners in the capital have the highest average remortgage loan amount of £215,098 and are remortgaging every 3.94 years. This compares to the national average of 4.71 years and 5.19 years in Wales, where homeowners have one of the lowest average remortgage loan amounts of £68,564. (See table below)

Regional Remortgage Data:

 

Region

Average LTV

Frequency of Remortgage

Average House Price

Average Remortgage Loan Amount

East Anglia

59

4.54

£175,821

£103,734

East Midlands

63

4.76

£122,716

£77,311

London

59

3.94

£364,574

£215,098

North East

66

5.09

£96,061

£63,400

North West

67

5.01

£109,361

£73,271

South East

57

4.60

£209,137

£119,208

South West

54

5.02

£171,695

£92,715

Wales

58

5.19

£118,215

£68,564

West Midlands

62

4.64

£130,088

£80,654

Yorkshire

65

4.94

£116,365

£75,637

LMS

Southerners also hold the greatest amount of property equity in spite of prices in this part of the country being the least affordable. The typical loan to value (LTV) of someone remortgaging in the South West is 54%. The capital and its satellite regions follow with homeowners in the South East remortgaging with an average LTV of 57% and Londoners and those in East Anglia 59%.

Prices in these four most southerly regions are the least affordable in England and Wales. A home in London costs £364,574 with the South East, East Anglia and South West next with an average house price of £209,137, £175,821 and £171,695 respectively.

At the other end of the scale, homeowners in the North West can lay claim to owning the smallest share in their homes with an average remortgage LTV of 67%. The North East comes second from bottom with an average LTV of 66% and Yorkshire third at 65%. These three most northerly English regions are the most affordable for buyers and as such still have an average remortgage loan amount significantly less than those in the south. For homeowners in the North East, it is less than a third of their counterparts in London.

Andy Knee, Chief Executive of LMS, comments:

“Continued strong property price growth in the south of the country means that home owners in these regions are able to build up their equity share at a faster rate. It is also likely that with strong house prices in these regions homeowners are taking every opportunity to increase their share so as to benefit from reduced monthly repayments.

“That homeowners in London are remortgaging the most frequently is indicative of this desire to get the best possible deal for what is a sizeable mortgage. The capital has long attracted job seekers from across the country, as well as internationally, and many homeowners are reluctant to commit to longer term mortgages in view of early repayment charges should they decide to move in the meantime.”

(Average house prices are based on the Land Registry’s House Price Index)

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s