Remortgage and original loan activity have been above average for this time of the year, so far.  According to the latest Bank of England reports, mortgage lending has increased since the beginning of autumn, much to the surprise of many associated with the housing market.  This is unusual for this time of year, but welcome none the less.  Immediately following the Olympic Games and Queen’s Jubilee a slowdown occurred which effectively lowered consumer confidence even further.

Remortgages have been especially popular in the capital city.  The average homeowner there is remortgaging slightly less than every four years.  The average remortgage amount is a hefty 215,000 pounds, also according to LMS.  Also London homeowners are remortgaging at a Loan to Value of almost 60%.  In contrast, South West homeowners are remortgaging at a Loan to Value of slightly more than 50%.

Andy Knee, Chief Executive of LMS, commented on homeowners who are able to contribute more to their home equity level, saying:  “Continued strong property price growth in the south of the country means that home owners in these regions are able to build up their equity share at a faster rate. It is also likely that with strong house prices in these regions homeowners are taking every opportunity to increase their share so as to benefit from reduced monthly repayments.”

Knee added: “That homeowners in London are remortgaging the most frequently is indicative of this desire to get the best possible deal for what is a sizeable mortgage. The capital has long attracted job seekers from across the country, as well as internationally, and many homeowners are reluctant to commit to longer term mortgages in view of early repayment charges should they decide to move in the meantime.”