You are here: Home - News -

Equity withdrawn through remortgaging hits record high

by:
  • 23/12/2015
  • 0
Equity withdrawn through remortgaging hits record high
The average amount of equity withdrawn through remortgaging hit a record high of £36,900 per customer in November, research from property services firm LMS reveals.

This is a rise of 4% from the previous high of £35,590 recorded in August.

The figure represents a month-on-month increase of 27% from £29,027 in October, and a 76% rise compared to the same time last year, when the average loan amount was almost £21,000.

The total amount of equity released by remortgaging reached £1.1bn in November, up 16% month-on-month and more than double the £0.5bn recorded in 2014.

While the value of monthly gross remortgage lending fell from £5.5bn in October to £4.6bn in November, it rose by 27% year-on-year compared to the November 2014 figure of £3.6bn.

The number of remortgage loans taken out by borrowers saw a similar trend. While it fell 9% from 32,100 in October to 29,363 in November, it increased by 22% compared to the 24,000 remortgages recorded in November of last year.

The average mortgage rate fell to a record low of 2.52% in October. This is lower than the 2.57% recorded in September and the 3.18% seen in October last year, which LMS said highlights the competitive offers currently available on the market.

Andy Knee , chief executive of LMS (pictured), said that while the latter part of the year has been stronger than the start, remortgaging still remains a long way off the levels seen prior to the recession.

He added that rising house prices and competitive rates leave remortgaging affordable, presenting the opportunity to capitalise on massive savings.

“Historically low interest rates and a range of new mortgage products mean the industry can be optimistic for the year ahead,” he said. “We hope this environment will generate more consistency in lending levels, something 2015 was unable to maintain.”

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:
hands dangling through prison bars
Mortgage fraud solicitor who gave victim ‘three years of hell’ gets reduced jail time

A solicitor who took part in a mortgage fraud which led to a £45,000 loan being obtained without the homeowner’s...

Close