* May remortgage lending rises to Â£3.9bn, up 17.1% on April’s Â£3.4bn. This is not only up 37.2% since the beginning of the year but is also the highest it has been since October 2012. Total gross mortgage lending is also up 21% to Â£14.7bn.
* The average remortgage loan amount is at an all-time high.
* Those remortgaging are each taking out an average of Â£19,325 in extra equity (above the value of the redeeming loan). This implies a total of Â£523.5m equity withdrawal by remortgaging in May – the largest total amount of equity being released from remortgaging in one year (since May 2012).
* Prospects: LMS anticipates a steady upward trend as customers continue to take advantage of current competitive deals.
LMS figures reveal that monthly gross remortgage lending increased by Â£576m in May to Â£3.9bn. This is up 17.1% on April’s Â£3.4bn reported by the Council for Mortgage Lenders (CML) last week.
The CML has also reported that total gross mortgage lending rose 20.8% in May to Â£14.7bn, from Â£12.2bn in April. As a result, remortgages now represent 27% of the market.
LMS estimates that the total number of remortgage loans in May increased by 12.7% to 27,087 compared with 24,041 in April. This figure, however, is down 10.8% on this time last year.
The average remortgage loan amount has risen by 3.9% over the past month and now stands at Â£145,754. This is the highest figure we have on record.
Commenting on the latest figures, Andy Knee, Chief Executive of LMS says:
“May marks yet another month of growth for the remortgage sector, with the total remortgage lending figure rising by 17.1% to Â£3.9bn. These heights have not been seen since October of last year. Despite a considerable increase in gross mortgage lending, remortgages continue to account for more than a quarter of the market.
“The average loan per person is at an all-time high, with an average of Â£19,325 being released to spend of paying off debts or to supplement income.
“We have seen a brilliant start to the year and we expect it to continue as the Funding for Lending Scheme (FLS) continues to encourage competitive rates for remortgage customers.”