The average remortgage loan size rose 5 per cent in June to a record high of £163,161, according to new research.
Rising property values have meant homeowners are able to remortgage for record loan amounts without increasing their loan-to-value ratio – which has not changed from the average 58 per cent LTV in May.
This helps ensure homeowners keep their current competitive interest rates.
LMS chief executive Andy Knee says remortgaging is still bearing the brunt of the new Mortgage Market Review rules, which were introduced in April.
“We remain fully confident, however, that the second half of this year will see a flurry of activity in the remortgage market with many people already expressing their intentions in anticipation of the inevitable base rate interest rise.
“Savvy buyers are still able to source good deals despite a rise in prices across the market with 56 per cent of those remortgaging able to take advantage of a better mortgage rate.
“Affordability is clearly critical for homeowners so it’s great to see remortgage payments as a percentage of income decrease for the first time since January.”
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