The provider of mover conveyancing services analysed over 10,000 remortgage records between 2014 and 2016. It found that homeowners remortgaged for an average of £15,000 more in 2016 than they did two years ago, borrowing around £181,000 compared to £166,000 in 2014. Some 57% of the cases completed in 2016 were capital raising.
At a regional level there was a significant variance in the average amount of a remortgage between 2014 and 2016. In the East Midlands, where the jump was the biggest, the average remortgage went from £70,000 in 2014 to £139,380 in 2016, a rise of £69,380.
However, in Yorkshire the average remortgage fell from £140,558 in 2014 to £93,660 in 2016, a drop of 46,898.
Doug Crawford (pictured), CEO of My Home Move, said: “Our research has revealed that 57% of cases from 2016 were remortgaging to raise capital, compared to pound-for-pound borrowing, suggesting people were looking to consolidate debt, release equity to fund home improvements or to pay their children’s university tuition fees or first-time buyer deposit, as the Bank of Mum and Dad was raided again.”
Crawford added: “This overall increase in borrowing suggests that homeowners are taking advantage of the ‘cheap’ remortgage deals which have been around for the past few years, and thanks to the Bank of England base rate cut in August, will remain so for months to come.”