Londoners hunt for best remortgage deals
LMS reported property owners in the capital have the highest average remortgage loan amount of £215,098 and are remortgaging every 3.94 years compared to the national average of 4.71 years and 5.19 years in Wales.
Andy Knee, chief executive of LMS, said: “Continued strong property price growth in the south of the country means that homeowners 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 to benefit from reduced monthly repayments.”
The report showed southerners also held the greatest amount of property equity in spite of prices in the South being the least affordable.
The typical loan to value of someone remortgaging in the South West is 54% while the capital and its satellite regions followed closely with homeowners in the South East remortgaging at an average LTV of 57% and Londoners and those in East Anglia 59%.
Knee added: “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.”
At the other end of the scale homeowners in the North West own the smallest share in their homes with an average remortgage LTV of 67%.
The North East came 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.
In Wales homeowners have one of the lowest average remortgage loan amounts of £68,564.