The UK remortgage market has been quite active in the last months, but slightly down compared with the same time last year.  Remortgages totaled just short of 25,000 during the month of August this year, while the same month last year saw more than 27,100 remortgages approved.  The average size of the loan is also off a bit with loan amounts higher in 2013 by 3%.

An increase in the amount of equity drawn out occurred in the month of August, as a rise of almost 10% was withdrawn to top £500m.

Andy Knee, chief executive of LMS, commented on the trend now occurring in lender demand, saying: “The hangover from MMR accounts for lower remortgage volumes, as those who could remortgage for a better rate or to reduce monthly payments are put off by the time-consuming and intrusive checking process.

“However, as the process is fine-tuned, affordability will come down, lender appetite will return and the arrival of highly competitive rates towards the end of the year will encourage more remortgage activity, to offer excellent long-term fix opportunities.”

Knee continued: “House price increases have also put people in a better position to remortgage, raising the amount of equity they have – and in some cases taking people out of negative equity caused by the crash – allowing them to withdraw more equity through remortgaging without increasing the size of their LTV.”

Knee also added: “Rising incomes, recorded by CML for the second month in a row, coupled with the entrance of more competitive remortgage rates mean that repayment as a percentage of income is now at its lowest amount since the start of the year – great news for customers considering remortgaging.”