The value of remortgages was 0.4% higher than the £4.2bn identified by the Council of Mortgage Lenders in November, the property services firm said. The average remortgage loan rose by 1%, to £26,498.

LMS chief executive Andy Knee said competitive rates helped the remortgage market resist the seasonal dip in mortgage lending: “Last month remortgage customers released more cash than ever before, at over £26,400, which will most likely be used to fund a festive spending spree.

“Looking ahead into the New Year, we are likely to see activity levels continue to rise, although the introduction of the Mortgage Market Review (MMR) in the spring may prove to be something of a rumble strip.”

More than a third of remortgagors have reduced their monthly payments by up to £500, an LMS customer survey found.

While the value of remortgage lending increased month-on-month, the number of remortgage loans fell. However, the number of loans is still 5.9% higher than in November 2013 and the average loan size 8.8% higher.

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