Remortgage data from LMS has backed up other reports on the continued trend of homeowners seeking new mortgage deals.  The reasoning behind the demand is attributed to rising confidence in the economy and cheap remortgages offered from lenders with low interest rates.  Rising equity levels are also likely a part of the reason that more homeowners are coming off their lender’s standard variable rate and leaving behind risk and taking on a steadier mortgage interest rate with fixed rate deals.

According to LMS, remortgaging accounted for more than a quarter of the mortgaging total in February at 26%.  The average remortgage taken out by homeowners for the second month of the year was £155,616 which was an increase over January by 2.6%. Overall, February remortgage lending was up 48% from last year at a total of £3.99 billion.

The total equity withdrawn by homeowners through remortgaging in February was estimated at £355 million.  Most homeowners are thought to be using their equity withdraw for debt consolidation, overdue home projects or for family holidays or needed purchases.

Andy Knee, Chief Executive of LMS said, “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 signaling a slight slow-down in the post new-years buzz but we fully expect this year to result in overall continued growth.

“The fact an average remortgage loan is higher than ever before comes at a great time for customers since rising incomes and lower interest rates has not damaged their affordability levels.

“Customers are poised to take advantage of these competitive rates that are currently available, as demonstrated by our latest customer survey, with more than 1 in 10 of people remortgaging, 11%, able to reduce their monthly payments by £200 or more.”