Remo activity surges in July
From June 2015 the number of remortgage loans rose by 47% from 31,600 to 46,400 and the value increased by 41% to £7.2m.
In total £1.27bn of equity was released in July, a 189% rise from the £449m released in July last year.
Andy Knee, chief executive of LMS, said: “Remortgaging has come back with a bite in July, following sluggish levels of activity throughout the latter part of 2014 and first months of 2015.
“We are confident these levels will be maintained with a steady stream of customers for the remainder of the year as record-low affordability encourages borrowers to lock in competitive rates.
“Despite news that a base rate rise may be on the cards, lenders have not hiked rates and there are still many excellent deals to be had as lenders compete for business. But these will not last forever and borrowers should consider remortgaging now to avoid missing out.”
He added: “The current economic climate and rising average incomes mean households are typically less stretched then previously. Remortgaging has never been as affordable and can offer huge monthly savings as the gulf between new purchase and remortgage payments as a percentage of income grew, to 2.7%.
“A 6-year high in the amount of equity withdrawn through remortgaging shows financially shrewd borrowers are keen to capitalise on these potential savings.”