Remortgage lending up by 6.2pc
LMS found that remortgage lending now accounts for 28% of gross mortgage lending total – the highest proportion since October 2012.
However total gross mortgage lending fell 8.8% in January to £10.4bn, down from £11.4bn in December. This is the lowest it has been since April 2012.
Andy Knee, chief executive of LMS, said: “Seasonal factors and bad weather in December had a severe impact on purchase lending in January, but the same cannot be said about remortgaging.
“The remortgage market has resisted a normal seasonal downturn, reaping the benefits of competitive rates which are now available because of the Government’s Funding for Lending Scheme.
“We expect this growth to continue into February and March.”
Although the £2.9bn of gross remortgage lending in January is 6.2% higher than in December it is still 26.2% lower than the same time last year.
LMS estimates that the total number of remortgage loans in January increased by 5.5% to 20,332 compared with 19,279 in December.
The average remortgage loan amount has risen consistently since May 2012 and now stands at £141,548. On an annual basis it is only 4% higher than at the same time in 2012.