Borrowers make the most of current competitive deals
- April remortgage lending rises to £3.4bn, up 17.0% on March’s £2.9bn, surpassing total gross mortgage lending, up 4.3% to £12.1bn.
- Remortgage lending now accounts for 28% of the gross mortgage lending total.
- Those remortgaging are each taking out an average of £18,906 in extra equity (above the value of the redeeming loan). This implies a total of £454.5m equity withdrawal by remortgaging in April.
LMS figures reveal that monthly gross remortgage lending increased by £489m in April to £3.4bn. This is up 17.0% on March’s £2.9bn reported by the Council for Mortgage Lenders (CML) last week.
The CML has also reported that total gross mortgage lending rose 4.3% in April to £12.1bn, from £11.6bn in March. As a result, remortgages now represent 28% of the market; this is the highest proportion since October 2012 (32%).
LMS estimates that the total number of remortgage loans in April increased by 16.1% to 24,042 compared with 20,700 in March. This figure, however, is down 8.1% on this time last year.
The average remortgage loan amount has risen slightly over the past month and now stands at £140,260. Although this figure is not as high as February’s peak, it is 7.9% higher than this time last year (£129,957).
Commenting on the latest figures, Andy Knee, Chief Executive of LMS says:
“April marks the second consecutive month of growth for the remortgage sector, with the total remortgage lending figure rising 17%.
“Although total gross mortgage lending also experienced strong growth, this was surpassed by the increases in the remortgage sector. As a result, remortgaging now represents the largest proportion of the total market since October 2012.
“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.”
Please see April’s full LMS Remortgage Report attached.
More detailed regional information available upon request.
For further information
Please call Sinead Meckin or John Wriglesworth on 02074271400 or LMS@wriglesworth.com
LMS’s UK remortgage lending estimates are based on LMS’s up to date internal conveyancing data, which, every month, covers many thousands of remortgage completion transactions.
Notes to Editors
- LMS is one of the UK’s largest providers of outsourced property services, including conveyancing, remortgage, and survey services.
- Each year LMS successfully manages some 130,000 transactions, helping to enable more than £15 billion in loans for intermediaries and lenders.
- The LMS system is based on the company’s unique STARS (Servicer Tracking & Reporting System) technology which manages transactions electronically on-line to ensure speed, cost efficiency and quality of service.
- To find out more about LMS, visit www.lms.com