According to data released by LMS, the figure was up 12.7% on June’s figure of £3.7bn.

Remortgaging now accounts for 25% of all mortgage lending.

Remortagors are taking out an average of £20,425 in extra equity. That figure is 9.7% lower than in June, but the total amount of equity withdrawn via remortgaging was the largest figure since May 2012, at £584m.

LMS figures reveal that monthly gross remortgage lending increased by £471m in July to £4.2bn. This is not only up 12.7% on June’s £3.7bn reported by the Council for Mortgage Lenders (CML) last week, but is also the highest July figure since 2008.

LMS estimates that the total number of remortgage loans in July increased by 6.7% to 28,590, compared with 26,800 in June. This figure is also up 13.9% on this time last year (25,100). The average remortgage loan amount has fallen by 2.4% over the pastmonth and now stands at £145,887.

However, this figure is 11.0% higher than this time last year.

Commenting on the latest figures, Andy Knee, Chief Executive of LMS 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 (14%) 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.”