• Average equity withdrawal rises 24% to £20,906 as budgets stretched in lead up to Christmas
• Gross remortgage lending falls 12% to £3.6bn in November
• Average remortgage loan amount dropped to £148,846 – lowest amount since July 2013

The latest figures from LMS reveal that monthly gross remortgage lending saw a decrease of 12% in November to £3.6bn, down from the £4.1bn in October reported by the Council for Mortgage Lenders (CML).

LMS estimates the number of remortgage loans also fell by 8% to 24,352 in November. This figure is also down 14% from this time last year, when there were 28,400 remortgage loans recorded.

The average remortgage loan has fallen to £148,846 – a 1% decrease from last month and 1.3% lower than the average loan of £150,822 in November 2013, making it the lowest amount since July 2013.

The average amount by which the new remortgage value exceeded the redeeming mortgage value grew to £20,906 in November. This is up by 24% from last month ahead of Christmas but down by 21% from last year.

The total amount of equity withdrawal from remortgaging in November stood at approximately £509m, a 14% increase from the £447m recorded in October, but a significant 32% drop from November 2013. This is the first month equity withdrawn from remortgaging has topped £500m in a single month since May this year.

The remortgage market share, therefore, now equates to 21% of the total market, 1% lower than last month and down from 25% in November last year.

Andy Knee, Chief Executive of LMS said:

Houses"The latest LMS remortgage report maintains the pattern we've witnessed across both the remortgage and entire mortgage market over the past year; one of a series of ups and downs.

"2014 has been a monumental year for the financial sector with implications for Help to Buy 2, the introduction of MMR and tighter regulation as well as changes to stamp duty all being felt and playing their part. Each of these has been a factor in the lower than anticipated results for remortgaging, especially when compared to last year.

"As we approach 2015 the cooling in the marketplace may well be an indication of a sign of things to come next year. We may well see more stability and consistency across the market if uncertainty ahead of the election can be brought under control.

"The average amount people have withdrawn from remortgaging has risen by 24% as budgets are stretched ahead of Christmas and families require extra money to fund the cost associated with this. However, in a sign of economic improvement, this figure remains a fifth lower than in 2013 suggesting improved affordability since last year.

"Significant house price growth earlier in the year has allowed for an increase in the amount of equity withdrawn through remortgaging without increasing the size of LTV – great news for customers who could benefit from this but may have been concerned about increasing their mortgage."

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