This is the highest level of remortgage lending in one month since November 2008, and is 45% higher than the previous year. The first month of the year also saw a spike in the number of loans taken out from 25,500 in December to 36,666.
The average remortgage loan size hit an all-time high of £170,319 in January, up 8% from December and 12% year-on-year.
Andy Knee, chief executive of LMS said: “With rising house prices, interest rates at historic lows and a host of competitive products available to choose from, growth is likely to continue even after the Stamp Duty panic dispels. Swap rates are also expected to decrease in mid to late February, lowering the lenders’ costs of loans further and boosting competitive offers.
“The indication that the base rate will stay low for a while longer means borrowers will continue to enjoy great rates. On top of that, the shadow of a Brexit and global economic uncertainty looms on, precluding a base rate rise. However it would still be advisable for savvier borrowers to lock into low rates to maximise their cost savings.”
