Monthly remortgaging has topped £6 billion for first time since 2009, new figures have revealed.
According to property services group LMS, the value of monthly remortgage lending rose to £6.1 billion in October, up 49% from a year ago.
The figures show that the number of remortgages hit 37,744 in October, up 22% since September and the highest amount since July 2009.
For the second time this year equity withdrawal broke the £1 billion mark.
The total amount of equity withdrawn through remortgaging was £1.1 billion in October, 13% higher than last month and 141% higher than the £454 billion recorded in the same month last year.
Andy Knee, chief executive of LMS, said that despite the rise, lending levels were still nowhere near pre-recession levels, when monthly lending frequently exceeded £10 billion.
“We have all the right conditions in place for a remortgage resurgence; lender appetite for growth in business; a plethora of competitive deals available in the market; and homeowners sitting on unparalleled housing stock value, which surpassed £5.1tn* in August of this year. The general increase in all segments of the lending market is further underpinned by a general sense of economic prosperity.
“For now, we await the release of the Chancellor’s Autumn Statement, to gauge whether there will be a change in housing policies which could impact activity in the New Year. So far, government policies, like extending development rights to convert offices into residential units have offered some respite, but we can’t escape the fact that a severe shortage lies at the heart of the housing challenge, further compounding a growing inequality between the haves and have-nots.”
