Remortgage lending went up by 48 per cent from last year, totalling £3.99bn, a recent report reveals.
While the figures show a 5 per cent monthly drop in 2014’s monthly gross remortgage lending, down from January’s £4.2bn, this is an increase of £1.3billion from February last year.
The LMS remortgage report showed that the average remortgage loan continues to increase, up by 2.6 per cent from last month and up 8.6 per cent since last year, reaching £155,616 — the highest amount ever recorded.
Remortgaging continues to maintain its market share of more than a quarter of the total market at 26 per cent, down only 2% from last month.
An estimated £355m in total equity was withdrawn by remortgaging in February in order to spend or pay off other debts.
Commenting on the latest figures, Andy Knee, Chief Executive of LMS says:
‘Despite a small decrease in remortgage lending from January to February, the past year has seen huge growth in the sector with remortgage lending up by almost half (48%) since this time last year showing impressive progress alongside improvements in the economy.
‘Total gross mortgage lending also fell in February signalling a slight slow-down in the post new-years buzz but we fully expect this year to result in overall continued growth.’
LMS is the UK’s leading legal conveyancing outsourcer, managing legal processes through a panel of experienced law firms.