The highest July figure since 2008
- July remortgage lending rose to £4.2bn, up 12.7% on June’s 3.7bn. This is the highest gross remortgage lending figure for this time of year since 2008.
- Total gross mortgage lending has risen 11.9% to £16.6bn; remortgaging now accounts for a quarter (25%) of the total market.
- Those remortgaging are each taking out an average of £20,425 in extra equity (above the value of the redeeming loan). Although this is 9.7% lower than in June (£22,615), the total amount of equity withdrawn by remortgaging in July (£584.0m) was the largest figure since May 2012.
LMS figures reveal that monthly gross remortgage lending increased by £471m in July to £4.2bn. This is not only up 12.7% on June’s £3.7bn reported by the Council for Mortgage Lenders (CML) last week, but is also the highest July figure since 2008.
The CML has also reported that total gross mortgage lending rose 11.9% in July to £16.6bn, from £14.8bn in June. As a result, remortgages now represent a quarter (25%) of the market.
LMS estimates that the total number of remortgage loans in July increased by 6.7% to 28,590, compared with 26,800 in June. This figure is also up 13.9% on this time last year (25,100).
The average remortgage loan amount has fallen by 2.4% over the past month and now stands at £145,887. However, this figure is 11.0% higher than this time last year.
Commenting on the latest figures, Andy Knee, Chief Executive of LMS says:
“Following subdued remortgage activity in June this month’s figures show a significant boost, with both gross remortgage lending and the number of remortgages both increasing significantly. In fact, the total remortgage lending figure marks the most successful July we have seen since 2008.
“The average amount of equity being released has fallen this month from its 13-month high in June but due to the increase in the number of customers, the total amount of equity being released by remortgaging is continuing to grow month by month.
“Despite Carney’s tying of an increase in interest rates to unemployment figures, more than one in seven (14%)* of our customers in July said they believed rates were going to rise. It is a good idea to take advantage of these deals whilst they are still around.”