According to the latest LMS Remortgage Report monthly gross remortgaging fell 23.4% in November.
The fall of £949m in November to £3.1bn marks a big change for the previously strong remortgage market.
The wider market saw static gross mortgage lending in November, remaining at £12.9bn.
However, the percentage of this that was gross remortgage lending over the month fell to 24%.
The average remortgage loan amount increased moderately in November, rising by £373 to £138,573.
Average loan amounts have continued to rise since hitting an 11-month low in May of £128,381. November’s figure is also 5.5% higher than this time last year (£131,350 — November 2011) and the highest it has been since December 2008 (£143,126).
Commenting on the figures, Andy Knee, chief executive, LMS said: “The number of homeowners remortgaging in November fell to its lowest level since the credit crunch but, more optimistically, the total value is still higher than the trough of the market in August 2012.
“This can be attributed to a seasonal lull in activity in Autumn as homeowners opted to delay any financial decision-making until the New Year.
“This is also reflected in the gross mortgage lending estimate from the CML which has reported that growth stalled following a similar burst of activity the previous month.
“In spite of a weaker than expected November for the remortgage market, we are still on course to reach our predicted 310,000 transactions this year with the FLS, general easing of funding constraints and competitive deals with finer margins contributing to growth of as much as 25% in 2013.”