Remortgage lending breaks records
May remortgage lending rose by 17.1% to £3.9bn, up 17.1% on April’s £3.4bn and a whopping 37.2% on figures from the beginning of the year.
Total gross mortgage lending is also up 21% to £14.7bn and the average remortgage loan amount is at an all-time high.
Andy Knee, chief executive of LMS, said: “May marks yet another month of growth for the remortgage sector, with the total remortgage lending figure rising by 17.1% to £3.9m.
“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.”
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.