Remortgage lending highest since July 08

The CML reported that total gross mortgage lending rose 11.9% in July to £16.6bn from £14.8bn in June; as a result remortgages now represent a quarter of the whole market.

Andy Knee, chief executive of LMS, said: “Following subdued remortgage activity in June this month’s figures show a significant boost with both gross remortgage lending and the number of remortgages both increasing significantly.

“In fact the total remortgage lending figure marks the most successful July we have seen since 2008.”

LMS estimated that the total number of remortgage loans in July increased by 6.7% to 28,590 compared with 26,800 in June. This figure is also up 13.9% on this time last year.

The average remortgage loan amount has fallen by 2.4% over the past month and now stands at £145,887 but still remains 11% higher than this time last year.

Knee said: “The average amount of equity being released has fallen this month from its 13-month high in June but due to the increase in the number of customers the total amount of equity being released by remortgaging is continuing to grow month-by-month.”

And he added: “Despite Carney’s tying of an increase in interest rates to unemployment figures more than one in seven of our customers in July said they believed rates were going to rise.

“It is a good idea to take advantage of these deals whilst they are still around.”