Record breaking remortgage withdrawals in November
The value of equity withdrawn from remortgaging hit a record £36,894 per customer in November, LMS research has found.
This represents a 76% increase since last November when the average loan amount was just £20,906 and a 27% month-on-month increase from £29,027 in October.
Despite the increased withdrawals per customer monthly gross remortgage lending fell to £4.6bn in November, down 17% from October’s Council of Mortgage Lenders figure of £5.5bn.
Andy Knee, chief executive of LMS, said: “After a strong autumn, it’s disappointing to see remortgaging activity decline slightly in the run up to Christmas, a time when many could really use the savings gained from switching to a better rate.
“The latter part of 2015 has been much stronger than the start, yet, despite this resurgence, remortgaging still remains a long way off the levels seen prior to the recession.
“Historically low interest rates and a range of new mortgage products mean the industry can be optimistic for the year ahead. We hope this environment will generate more consistency in lending levels, something 2015 was unable to maintain.”