In May remortgage lending rose to £3.9 billion, up 17.1 per cent on April’s £3.4 billion, according to figures from LMS Property Services.
Figures reveal that monthly gross remortgage lending increased by £576m in May to £3.9bn. This is up 17.1 per cent on April’s £3.4bn reported by the Council for Mortgage Lenders (CML) last week.
The CML has also reported that total gross mortgage lending rose 20.8 per cent in May to £14.7bn, from £12.2bn in April. As a result, remortgages now represent 27 per cent of the market.
LMS estimates that the total number of remortgage loans in May increased by 12.7 per cent to 27,087 compared with 24,041 in April. This figure, however, is down 10.8 per cent on this time last year.
The average remortgage loan amount has risen by 3.9 per cent over the past month and now stands at £145,754. This is the highest figure we have on record.
Commenting on the latest figures, Andy Knee, Chief Executive of LMS says: “May marks yet another month of growth for the remortgage sector, with the total remortgage lending figure rising by 17.1 per cent to £3.9m. These heights have not been seen since October of last year. Despite a considerable increase in gross mortgage lending, remortgages continue to account for more than a quarter of the market.
“The average loan per person is at an all-time high, with an average of £19,325 being released to spend of paying off debts or to supplement income.
“We have seen a brilliant start to the year and we expect it to continue as the Funding for Lending Scheme (FLS) continues to encourage competitive rates for remortgage customers.”
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