Figures from the firm showed that remortgage lending grew from £2.6bn in February to £2.9bn the following month, a rise of 12.9%.
BBA figures out today also confirmed a 12% lending rise.
With total gross mortgage lending now at £11.6bn, this means remortgage loans account for a quarter of all gross mortgage lending.
LMS found that those remortgaging in March also took out an average of £20,982 in extra equity above the value of the redeeming loan, sharply up on recent months.
It estimates that the number of remortgage loans completed in March was 20,699 up on February’s figures but considerably down on the 27,534 recorded in March 2012.
Andy Knee, chief executive of LMS, said: “Remortgage borrowers are also taking advantage of current competitive mortgage rates to increase the size of their mortgage borrowing, releasing an average of £20,982 cash in order to spend or reduce other debts.
“As a result, remortgage borrowers are also taking on higher repayment commitments relative to their income.
“Remortgage repayments as a percentage of income are now at the highest for over three years at 21.2%. This percentage is now almost the same as for new purchase borrowers, 21.4%, who have typically borrowed more than remortgagors.”
