Homeowners in London who have the largest property debt are remortgaging more frequently than any other region as they look to manage their costs, reveals LMS.
LMS, one of the UK’s largest remortgage specialists, reports that property owners in the capital have the highest average remortgage loan amount of £215,098 and are remortgaging every 3.94 years. This compares to the national average of 4.71 years and 5.19 years in Wales, where homeowners have one of the lowest average remortgage loan amounts of £68,564. (See table below)
Regional Remortgage Data:
| Region | Average LTV | Frequency of Remortgage | Average House Price | Average Remortgage Loan Amount |
| East Anglia | 59 | 4.54 | £175,821 | £103,734 |
| East Midlands | 63 | 4.76 | £122,716 | £77,311 |
| London | 59 | 3.94 | £364,574 | £215,098 |
| North East | 66 | 5.09 | £96,061 | £63,400 |
| North West | 67 | 5.01 | £109,361 | £73,271 |
| South East | 57 | 4.60 | £209,137 | £119,208 |
| South West | 54 | 5.02 | £171,695 | £92,715 |
| Wales | 58 | 5.19 | £118,215 | £68,564 |
| West Midlands | 62 | 4.64 | £130,088 | £80,654 |
| Yorkshire | 65 | 4.94 | £116,365 | £75,637 |
Southerners also hold the greatest amount of property equity in spite of prices in this part of the country being the least affordable. The typical loan to value (LTV) of someone remortgaging in the South West is 54 per cent. The capital and its satellite regions follow with homeowners in the South East remortgaging with an average LTV of 57 per cent and Londoners and those in East Anglia 59 per cent.
At the other end of the scale, homeowners in the North West can lay claim to owning the smallest share in their homes with an average remortgage LTV of 67 per cent.
Andy Knee, Chief Executive of LMS, comments: “Continued strong property price growth in the south of the country means that home owners in these regions are able to build up their equity share at a faster rate. It is also likely that with strong house prices in these regions homeowners are taking every opportunity to increase their share so as to benefit from reduced monthly repayments.
“That homeowners in London are remortgaging the most frequently is indicative of this desire to get the best possible deal for what is a sizeable mortgage. The capital has long attracted job seekers from across the country, as well as internationally, and many homeowners are reluctant to commit to longer term mortgages in view of early repayment charges should they decide to move in the meantime.”
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