Figures from LMS property services have found that remortgage levels increased by £18 million in November to £4.22 billion, equating to a rise of 24.1 per cent on last year’s sum.
The Council of Mortgage Lenders (CML) also reported that total gross mortgage lending fell to £17 billion in November, meaning remortgages now represent a quarter of the market as a whole.
LMS estimates that the total number of remortgage loans in November dropped to 27,968, compared with 28,300 in October. However, despite this, the number of remortgage customers in November is still 5.9 per cent higher than this time last year (26,400).
The average remortgage loan amount has risen slightly (by 1.0 per cent) over the past month and now stands at £150,822. This figure is also 8.8 per cent higher than this time last year.
Commenting on the latest figures, Andy Knee, Chief Executive of LMS says: “While the CML reported total gross mortgage lending to be down slightly over the past month, the remortgage market has resisted the seasonal dip and is up 0.4 per cent on October’s figure.
“In November, remortgage lending continued to climb as savvy customers flock to the array of competitive rates on offer. Our latest customer survey suggests that more than a third (35 per cent) were able to reduce their monthly payments by up to £500.
“Last month remortgage customers released more cash than ever before, over £26,400, which will most likely be used to fund a festive spending spree. Looking ahead into the New Year, we are likely to see activity levels continue to rise, although the introduction of the Mortgage Market Review (MMR) in the spring may prove to be something of a rumble strip.”
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