Remortgage lending is up 44% year-on-year in December 2013 with the typical borrower now remortgaging every 4.3 years.
· In December remortgage lending rose to £4.16bn, up 1.5% from November and 43.5% compared to the same month last year.
· Total gross mortgage lending holds steady at £17.0bn; remortgaging now accounts for nearly a quarter of the total market (24%).
· Remortgaging most frequent since October 2009; as competitive deals now tempt borrowers to remortgage on average every 4.3 years.
· Estimated £764m in total equity withdrawn by remortgaging in December.
LMS figures reveal that monthly gross remortgage lending increased by £61m in December, to £4.16bn. This is a monthly rise of 1.5% on November’s £4.1bn reported by the Council for Mortgage Lenders (CML) this week, and 43.5% higher than December 2012.
The CML has also reported that total gross mortgage lending held steady at £17.0bn in December. As a result, remortgages represents 24% of the total market.
LMS estimates that the total number of remortgage loans remained relatively constant in December, only dropping by 0.1% to 27,462, compared with 27,500 in November. However, this figure is up by a quarter (25.4%) from this time last year, when there were only 21,900 remortgage customers recorded.
The average remortgage loan amount has seen a marginal increase (by 0.5%) over the past month and now stands at £151,525. This figure is however 7.8% higher than December 2012.
Commenting on the latest figures, Andy Knee, Chief Executive of LMS says:
“The past twelve months has seen a remarkable upswing in the remortgage market. While the overall mortgage marketplace remained steady in December, remortgaging has leapfrogged ahead with sustained positive growth.
“Even during the hectic festive season, customers continued to be coaxed in by the competitive rates on offer. These enticing deals have led to borrowers remortgaging at the most frequent rate for over four years.
“Our latest customer survey suggests that nearly four in ten (39%) were able to reduce their monthly payments in December, some by as much as £500.
“Looking ahead into 2014, all the signposts are pointing upwards with lending levels likely to rise in the immediate future. However slightly further down the line we may see this level out somewhat, as new regulations come into full effect in the spring.”