You are here: Home - News -

Remortgagors release cash for Christmas

by: Mortgage Solutions
  • 17/12/2015
  • 0
Remortgagors release cash for Christmas
Almost a third (31%) of borrowers who remortgaged in November did so to increase the size of their loan, and release some cash before Christmas, according to LMS.

Of these switchers, two-thirds (66%) increased their loan amount by more than £10,000.

Home improvements were the main resons for accessing equity, according to the research. Of the 31% who remortgaged to increase the size of their loan, three in five did so to fund home improvements (60%). In contrast, just 17% are using the extra cash to pay off other debts.

There was also an increase in customers remortgaging in order to access lower interest rates, rising to 63% of remortgagors, up from 61% during the previous month.

A third of those who remortgaged managed to reduce their monthly payments by up to £500, also freeing up extra cash by limiting outgoings, broadly the same as last month (34%).

Andy Knee, chief executive of LMS, said: “Savvy borrowers are using remortgaging to their advantage, locking in to low rates ahead of the festive period and in many cases accessing cash to make home improvements. For some, the additional funds will provide a much-needed cash injection in the run up to Christmas as families feel under rising pressure to spend huge sums of money. However, the market remains a long way short of the pre-recession years and greater customer appetite could see activity levels increase throughout 2016.

“The setting is certainly ripe for remortgaging and record low rates, lender appetite and rising house prices present more affordable options. We therefore suggest families consider all their options ahead of evaluating their finances as part of their financial planning.”

There are 0 Comment(s)

You may also be interested in

Business Skills

In this section, we offer short ‘how to’ guides on harder to crack areas of business. From social media, to regulation or niche product areas, we cover it all.

Profiles

Our journalists interview key industry entrepreneurs, strategists and commentators for day-to-day market insight and a strategic view of where the industry is heading. We offer lessons for success and explore the opportunities for your business

Success in Practice

Here, we share case studies fleshing out best practice to help you decide what could work for your business. Take a look at how others approached complex tasks like launching a new mortgage lender, advising on a new product area or deciding to specialise in another. Learn from others mistakes and triumphs.

Marketwatch

Each week, we ask top mortgage and property commentators with a unique perspective to examine a key news headline, market move or regulatory or political issue.

Poll

Vote in our weekly poll here. It’s your chance to tell us what you think and be heard on the top news stories of the week. Review our archive to find out what your industry really thinks and all our coverage of the results.

Top Comments

Be part of the conversation on Mortgage Solutions. We want to hear from you. We have a tool called Disqus to tell us which stories get the most comments each week. Every Friday, the team picks the most thoughtful or opinionated contributions from our readers to enjoy again. Don’t forget to share your favourite stories from the site on social media to keep the conversation going.
  • RT @robjupp: Great day yesterday for donations to @MortSleepOut. With Gift Aid, we are now close to £17,000. It would be great to get to £2…

Read previous post:
Ladies Executive Club logo
Ladies Executive Club – The value of mentoring

The sixth Ladies Executive Club, hosted by Martese Carton, senior corporate account manager, RBS, met to discuss the value of...

Close