Borrowers go remortgaging mad
Remortgage growth in October exceeded all optimistic expectations, topping £6bn for the first time since 2009, according to a report from LMS.
This is up almost 49% from October last year and a fifth since last month alone, with the number of remortgages in October a whopping 37,744 – the highest number in one month since June 2009.
The total amount of equity released by borrowers switching to a new homeloan was £1.1bn in October, 13% higher than last month and 141% higher than the £454bn recorded in October last year. This is just the second time this year that equity withdrawal has topped £1bn (£1.1bn in June 2015).
Commenting on the latest figures, Andy Knee, chief executive of LMS, said: “Remortgaging is back with a bang, and rightly so as borrowers capitalise on the competitive offers currently available. However, we’re nowhere near pre-recession levels – when monthly lending frequently exceeded £10bn – showing that there is plenty of capacity for continued growth over coming months and years.
“We have all the right conditions in place for a remortgage resurgence; lender appetite for growth in business; a plethora of competitive deals available in the market; and homeowners sitting on unparalleled housing stock value, which surpassed £5.1tn in August of this year.”