Remortgaging represented nearly a third of the entire market in October, reaching an 11 month high of £4.1 billion gross.
This figure is 23.1 per cent on the £3.3 billion for remortgage lending in September, as reported by the Council of Mortgage Lenders.
Those remortgaging are taking out an average of £17,318 each of extra equity (above the value of the redeeming loan), up 11.4 per cent on September.
The market has turned around dramatically in a short time, after it hit a 12 year low in August last. The growth is expected to continue into November due to the high number of competitive remortgage deals coming on stream from lenders.
The average remortgage loan amount rose by over £750 to £138,200 in October, the highest it has been since the beginning of the year. Average loan amounts are now up 5.7 per cent on the same time last year (£130,763 – October 2011) and are currently at their highest level since December 2008 (£143,126).
LMS figures indicate that the total number of remortgage loans advanced increased by 19.5 per cent in October, up from 24,600 in September to 29,399. This is just short of the 31,200 advanced during October 2011.
Commenting on the latest figures, Andy Knee, Chief Executive of LMS said: “October showed a second consecutive month of growth in the total value and number of remortgages as people took the opportunity to snap up the good deals that are now available – uncertain about just how long they might be around.
“Factors such as the Government’s Funding for Lending Scheme and increased lender competition have acted as a positive influence on the market and attracted homeowners who were otherwise happy to sit tight on a lender’s SVR.
“Renewed levels of activity in the mortgage market are feeding through to property prices which are robust and both of these will serve to further boost consumer and lender confidence this side of Christmas.”
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