In December, remortgagors took out average loans of £140,553, nearly £2,000 higher than November and 6.1% higher than the 2011 equivalent.
However, total remortgaging volumes fell to the lowest monthly value since the end of 1999.
LMS chief executive Andy Knee said the remortgage market contracted in 2012, but he expected Funding for Lending to result in better deals for remortgage customers: “The drop in activity in the second half of 2012 was widely anticipated, this being a lull before the full introduction of the Funding for Lending Scheme (FLS) which is widely expected to bring a pick up to the mortgage market in 2013.
“December’s drop can also be attributed to savvy homeowners holding off for more competitive products in the New Year combined with the normal seasonal lull in activity in the months leading up to Christmas.”
Average remortgage loans were broadly in line with average house prices – London had the highest average remortgage value while the North East had the lowest. East Anglia, the South East and the South West all currently have the lowest remortgage LTV at 57%, compared to 70% in the North East.
Broker Conveyancing managing director Harpal Singh reported a growth in remortgaging business in the run up to 2013 and described the new year as a “real opportunity”.
“Many industry experts are predicting increased levels of lending this year and we hope that advisers are able to take advantage of any upturn and the additional income that both increased business levels, coupled with the provision of conveyancing advice, can offer,” he said.
