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:
“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.”
