According to Mortgage Solutions gross remortgage lending rose to £6.1bn in October, topping the £6m mark for the first time since January 2009, figures from property services firm LMS show.

This is an increase of 20% compared to September’s figure of £5.1bn. The value of remortgaging also rose by 49% in October compared to the same time last year.

The number of loans taken out for remortgages by borrowers in October rose 22% to 37,744 from 31,000 transactions in September, a 20% increase compared to October 2014.

chief executive of LMS ,While Andy Knee said remortgaging is ‘back with a bang’, he said the figures are still nowhere near pre-recession levels, when monthly lending levels frequently exceeded £10bn, which ‘shows there is plenty of capacity for continued growth over coming months and years’.

He also went on to say that LMS awaits the release of the Chancellor’s Autumn Statement to gauge whether there will be a change in housing policies which could impact activity in the New Year.

“So far, government policies, like extending development rights to convert offices into residential units have offered some respite, but we cannot escape the fact that a severe shortage lies at the heart of the housing challenge, further compounding a growing inequality between the haves and have-nots.”

While homeowners have access to ‘unparalleled housing stock value’, which was exceeding £5.1trn in August this year according to research by Lloyds Banking Group, the average amount of equity withdrawn from remortgaging per customer has decreased month-on-month from £31,241 in September to just over £29,000 in October.

However, this is still a growth of 72% since October 2014, when the average loan amount was £16,828.

The total amount of equity released by remortgaging was £1.1bn in October, 13% higher than September and 141% higher than the £454m recorded in October last year.

This is the second time this year, along with June when the amount was once again £1.1bn, that equity withdrawal has topped £1bn.

 

Source: http://www.mortgagesolutions.co.uk/news/2015-11-24-gross-mortgage-lending-at-highest-level-in-six-years/   27/11/2015