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Remortgage lending leaps 17% in second month of growth

Julia Rampen
Written By:
Julia Rampen
Posted:
Updated:
24/05/2013

Lenders increased remortgage activity by 17% last month to reach

The growth in remortgage lending for a second month running means the sector accounts for 28% of total gross mortgage lending – up from 25% in March.

LMS chief executive Andy Knee said: “Although total gross mortgage lending also experienced strong growth, this was surpassed by the increases in the remortgage sector. As a result, remortgaging now represents the largest proportion of the total market since October 2012.

“People choosing to remortgage at the moment are benefiting from the competitive landscape created by the government’s Funding for Lending Scheme (FLS). The resultant excellent rates from lenders are – as you can see from our figures – fuelling growth in the market.

“We expect to see this upward trend continue over the coming months.”

In total there were 24,042 remortgages last month. After a dip in March, the average remortgage loan increased by 0.7% in April to reach £140,260. The new loan’s loan-to-value climbed by 1% to reach 59% LTV.

London had the largest average remortgage value in April at £237,473 – more than twice that of the North East. The South West currently has the lowest remortgage LTV at 56%.

East Anglia, London and the West Midlands all saw an increase in the frequency of remortgaging over the last month. The remaining regions witnessed a decrease.