Remortgaging improves in September
Figures from LMS suggest those remortgaging are taking out an average of £15,500 each of extra equity above the value of the redeeming loan implying a total of £359m equity withdrawal from remortgaging in September
Andy Knee, chief executive of LMS, said: “Notwithstanding the considerable increase in September, in historic terms, the remortgage lending figure is still relatively low.
“In our last Remortgage Report, we accredited the low remortgage lending figures to borrowers holding back, waiting to take advantage of the current very attractive 3% mortgage deals. This theory is reflected in the rise in remortgage activity that we have witnessed in September.
“Competitive remortgage deals, combined with future prospects of tighter mortgage pricing, due to the government’s Funding for Lending Scheme, leads us to expect sustained improvements in the remortgage market for the remaining months of this year.”