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Remortgages down 21% to make worst October on record

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  • 25/11/2014
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Remortgages down 21% to make worst October on record
The number of remortgage loans fell 21% in October compared to the same period last year resulting in 23,505 transactions, according to research.

The report, published by LMS, revealed this to be the lowest number of remortgage transactions ever recorded in an October month.

Compared to the previous month, remortgage transactions in October were 15% lower.

The value of remortgage loans in October dropped by a fifth to £3.5bn month-on-month down from £4.4bn, reported by the Council for Mortgage Lenders (CML). This was the lowest amount since June 2013 and the worst October since 2010.

The average remortgage loan dropped to £149,715, down 6% from September and the lowest value recorded for a year.

Remortgaging now accounts for 19% of the total market, 5% lower than last month and down from 24% in October last year.

Andy Knee (pictured), chief executive of LMS, said: “Despite signs of resurgence in the market last month that remortgaging had taken a turn for the better, this month saw that assumption come crumbling down with the worst October we’ve experienced since during the midst of the recession.

“Even with the competitive rates on offer, customers appear hesitant to take advantage of these perhaps, in part, due to the increased regulation of [Mortgage Market Review] MMR or the introduction of loan to income (LTI) caps.”

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