Equity withdrawn by remortgaging up 19% to £965.6m

The total amount of equity withdrawn by remortgaging rose by 19% month-on-month from £814.7m in February to £965.6m in March, according to LMS.

Related topics:  Mortgages
Rozi Jones
26th April 2016
house and savings

Total equity withdrawn is up by 61% year-on-year from the £600.4m recorded in March 2015 and is the largest amount recorded in the month of March since 2008.

The data also shows that monthly gross remortgage lending fell to £4.7bn in March 2016, down by 3% from the £4.8bn recorded in February. The value of gross remortgage lending is however, up 8% on an annual basis.

The number of remortgage loans increased – by 7% – from 28,400 in February to 30,282 in March. However the average loan size decreased: from £158,144 in February to £153,916 in March.

Per customer, the average amount of equity withdrawn from remortgaging rose by 11% from £28,685 in February to £31,887 in March. The average amount of equity withdrawn is also 47% higher than March of last year (£21,755) and is the largest amount ever withdrawn in the month of March.

Andy Knee, Chief Executive of LMS said:

“March witnessed a very strong month for mortgage lending as house buyers rushed through purchases before the changes to Stamp Duty for second homes and buy-to-let came into being while remortgaging remained steady.

“Over the coming months, speculation about the possibility of a Brexit will continue to dominate news and wreak havoc with the financial markets. However, this should not dissuade people from remortgaging.

“Competitive rates mean the affordability of remortgages remains good and homeowners can vastly cut their monthly outgoings or withdraw large sums of money to cover an immediate cost. Latest views from the Bank of England suggest the base rate could fall even further boosting an already positive offering.”

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