Remortgaging up 10%
Published by Max Salsbury for 24dash.com in Housing and also in Finance
mortgageImage: via Shutterstock
Remortgage lending soared by 10.4% in September to £3.9 billion, compared to August's £3.5bn.
With gross mortgage lending falling to £16.2bn, remortgaging now accounts for 24% of the total market.
The figures from Legal Marketing Services show that remortgagers are each taking out an average of £21,339 in extra equity (above the value of the redeeming loan).
Andy Knee, chief executive of LMS, said: “Following a slight knock in August, the remortgage sector appears to have leapt back on its feet – with remortgage lending growing by more than 10% during September. The market as a whole has been contracting slightly over the past three months, and as a result remortgages now account for a larger proportion of the market.
“The average remortgage loan amount is currently the highest it has ever been, according to our records which date back to 2005. This is indicative of the steady upward trend in the average house price that we have been witnessing in recent months.
“There are some fantastic deals out there, and as you can see even those with an existing mortgage are able to take advantage.”