Best April for remortgage lending since 2008: Lending up 28% since last year after bouncing back from early MMR slump

• Total value of remortgage lending rose 21% in April and 28% year-on-year to £4.4 billion – the largest amount in any April since the recession – picking up after a fall in March

• Record breaking month as average remortgage loan sets new all-time high of £160,806

• Number of remortgage loans increases by almost a tenth (9%) in April to 27,152

• Borrowers release £15,696 in average equity, totalling £426m – up from £320m in March

• “Remortgaging has battled back in April after a dip in March at the early hand of MMR”
Andy Knee, CEO

LMS figures reveal that monthly gross remortgage lending saw a monthly increase of 21%, up to almost £4.4bn in April, from the £3.6bn for March reported by the Council for Mortgage Lenders (CML) last week. This is a substantial bounce back after last month saw a decrease ahead of MMR coming into play. It is also up 28% from last year making it the largest amount in any April since 2008.

LMS also estimates that the number of remortgage loans rose by 9% to 27,152 in April. This figure is also up by 3% from this time last year, when there were 26,300 remortgage loans recorded.

The average remortgage loan amount has set a new all-time high over the past month and now stands at £160,806 (a 3% increase from last month). This figure is 15% higher than April 2013.

The remortgage market share now equates to 26% of the total market up from 23% last month but down from 28% in April last year.

Commenting on the latest figures, Andy Knee, Chief Executive of LMS says:

Property (PD)Remortgaging has battled back in April after a dip in March at the early hand of MMR, having also been struck by a creeping up of rates from lenders. Total lending value was up by more than a quarter since last year making it the largest amount in April since 2008 while the average loan has also set a new record.

However, we still fully expect MMR to have a continued impact over the next few months before the market gets back to a healthy normal for the second half of the year.

While lenders have begun increasing rates, there are still many good deals still on the table and 56% of remortgage customers were able to take advantage of a new, lower mortgage rate.

With so much attention from the Bank of England and FCA, affordability is clearly the idiom of the month. And with so much speculation rife and a base rate rise looming on the horizon, we advise people to keep a tight check on their spending and plan ahead for the day when the Governor does decide to raise interest rates.”

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