Following a drop in total gross mortgage lending to £17bn in November, reported by the Council of Mortgage Lenders, the remortgages now represent 25% of the total market.
LMS estimated that the total number of remortgage loans in November dropped to 27,968 compared with 28,300 in October. But, despite this, the number of remortgage customers in November is still 5.9% higher than this time last year (26,400).
The average remortgage loan amount has risen slightly (by 1%) over the past month and now stands at £150,822. This figure is also 8.8% higher than this time last year.
Andy Knee, chief executive of LMS, said: “In November remortgage lending continued to climb as savvy customers flock to the array of competitive rates on offer. Our latest customer survey suggests that more than a third were able to reduce their monthly payments by up to £500.
“Last month remortgage customers released more cash than ever before, over £26,400, which will most likely be used to fund a festive spending spree. Looking ahead into the New Year, we are likely to see activity levels continue to rise, although the introduction of the Mortgage Market Review in the spring may prove to be something of a rumble strip.”