Remortgage activity has been at unprecedented levels each month since the Bank of England announcement regarding the rise in base rate which is expected in the coming months. More and more house owners are taking advantage of the benefits of a remortgage – even house owners who were unaware of the valuable mortgage lending tool. House equity is also being withdrawn at a record pace. The average remortgagor withdrew a record £37,000 in home equity during the month of November.

Home equity is a source of cash for home owners which is one of the benefits of a remortgage. The equity is especially coming in handy at this time of year. The holidays are a time of gift giving and travel which always requires extra cash. The amount of equity withdrawn during the month of November was not only a record for the month, but also a year on year rise of more than 75%. The average amount last November was slightly under £21,000.

The average amount of equity withdraw per house owner who chose to remortgage in November was a 27% increase from the month of October.

Andy Knee, Chief Executive of LMS commented on the current remortgage sector, saying: “After a strong autumn, it’s disappointing to see remortgaging activity decline slightly in the run up to Christmas, a time when many could really use the savings gained from switching to a better rate.

“Historically low interest rates and a range of new mortgage products mean the industry can be optimistic for the year ahead.”

Knee added: “We hope this environment will generate more consistency in lending levels, something 2015 was unable to maintain.”