Remortgage lending soars 13%
Published by Max Salsbury for 24dash.com in Housing and also in Finance
mortgageImage: via Shutterstock
Remortgage loans soared by 12.7% in July, rising to £4.2 billion on June's £3.7bn.
The figure is the highest gross remortgage lending amount for July since 2008.
On average, remortgagers are taking out an average of £20,425 in extra equity (above the value of the redeeming loan).
Property service firm LMS, who compiled the figures, estimates that the total number of remortgage loans in July increased by 6.7% to 28,590, compared with 26,800 in June.
Andy Knee, LMS chief executive said: “Following subdued remortgage activity in June this month’s figures show a significant boost, with both gross remortgage lending and the number of remortgages both increasing significantly. In fact, the total remortgage lending figure marks the most successful July we have seen since 2008.
“The average amount of equity being released has fallen this month from its 13-month high in June but due to the increase in the number of customers, the total amount of equity being released by remortgaging is continuing to grow month by month.
“Despite Carney’s tying of an increase in interest rates to unemployment figures, more than one in seven of our customers in July said they believed rates were going to rise. It is a good idea to take advantage of these deals whilst they are still around.”