Remortgaging rockets in October
Remortgaging bounced back in spectacular style from September’s post-Brexit low, said LMS.
The conveyancing service provider noted that the value of remortgage lending rose by 23% from £5.5bn in September to £6.8bn in October – its highest monthly level in nearly eight years, since November 2008.
It also represents an annual increase of 19% from £5.7bn in October 2015.
The number of remortgages was also up significantly – rising by more than a quarter (26%) from 31,500 in September to 39,547 in October – its highest level since January 2009.
LMS said the boost in remortgaging activity comes as homeowners lock into record-low rates in anticipation of a rate rise in 2017. Chief executive Andy Knee said: “The remortgage market has enjoyed a revival since September’s post-Brexit low. Homeowners are remortgaging at levels that have not been seen for almost eight years, when the recession hit, while the frequency of remortgaging is at a seven year high.
“There are several key driving forces behind this revival. Some of this is seasonal. In the run-up to Christmas, families are looking to tighten the purse strings, reduce their monthly bills and prepare for the festivities. But last year, we only saw a 7.5% rise from September to October – this is of a different scale. Record-low rates are providing the perfect opportunity for homeowners to remortgage and secure monthly savings on their mortgage bills.”