25pc remortgaging to clear debts or support spending
LMS surveyed those opting to remortgage at the start of the year and found that of those increasing their loan amount two thirds (66%) did so by as much as £10,000.
Releasing equity in their home meant that 57% were able to fund a home improvement while 37% said they would use the extra capital to consolidate their debts.
A small number of homeowners also said they planned to use the money to grow their property portfolio (4%) and help their children onto the property ladder (3%).
Andy Knee, chief executive of LMS, said: “Remortgaging homeowners are benefitting from some excellent rates from lenders with many eager to snap up a good deal, be it to reduce the monthly mortgage burden or free up capital to spend elsewhere.
“The Funding for Lending Scheme will help to increase competition in the remortgage market over the next few months and we expect to see many more homeowners seizing the opportunity to make, what is in many cases, a substantial monetary saving.”
LMS found that nearly two thirds (63%) of those remortgaging were motivated by the potential cash savings on offer.
Of these remortgaging to save money one in two (56%) have achieved a monthly saving of up to £500 and one in twenty (6%) more than £500.