- May remortgage lending rises to £3.9bn, up 17.1% on April’s £3.4bn. This is not only up 37.2% since the beginning of the year but is also the highest it has been since October 2012. Total gross mortgage lending is also up 21% to £14.7bn.
- The average remortgage loan amount is at an all-time high.
- Those remortgaging are each taking out an average of £19,325 in extra equity (above the value of the redeeming loan). This implies a total of £523.5m equity withdrawal by remortgaging in May – the largest total amount of equity being released from remortgaging in one year (since May 2012).
- Prospects: LMS anticipates a steady upward trend as customers continue to take advantage of current competitive deals.
LMS figures reveal that monthly gross remortgage lending increased by £576m in May to £3.9bn. This is up 17.1% on April’s £3.4bn reported by the Council for Mortgage Lenders (CML) last week.
The CML has also reported that total gross mortgage lending rose 20.8% in May to £14.7bn, from £12.2bn in April. As a result, remortgages now represent 27% of the market.
LMS estimates that the total number of remortgage loans in May increased by 12.7% to 27,087 compared with 24,041 in April. This figure, however, is down 10.8% on this time last year.
The average remortgage loan amount has risen by 3.9% over the past month and now stands at £145,754. This is the highest figure we have on record.
Commenting on the latest figures, Andy Knee, Chief Executive of LMS says:
“May marks yet another month of growth for the remortgage sector, with the total remortgage lending figure rising by 17.1% to £3.9bn. These heights have not been seen since October of last year. Despite a considerable increase in gross mortgage lending, remortgages continue to account for more than a quarter of the market.
“The average loan per person is at an all-time high, with an average of £19,325 being released to spend of paying off debts or to supplement income.
“We have seen a brilliant start to the year and we expect it to continue as the Funding for Lending Scheme (FLS) continues to encourage competitive rates for remortgage customers.”
Please see May’s full LMS Remortgage Report attached.
More detailed regional information available upon request.
For further information
Please call Sinead Meckin, Christina Gillings or John Wriglesworth on 0207 427 1400 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