Remortgaging activity has bounced back in January to reach its highest level in seven years as homeowners take advantage of a surge in mortgage products being offered at record low rates.
Remortgage lending surged by 49 per cent to £6.2bn in January from £4.2bn in December and was 45 per cent ahead of the same month last year, according to the data released today by property services group LMS.
It was also the largest value of remortgage lending in a month since November 2008, when £7bn worth of loans was recorded.
The number of loans taken out reached 36,666, a 37 per cent jump on the same month last year and the highest number since July 2009 when 39,500 loans were taken out.
LMS chief executive Andy Knee said: “Although the month-on-month growth in remortgaging can be partly attributed to a seasonal uplift and a New Year financial spring clean – as well as a Stamp Duty panic – other factors are working in favour of the market.”
“With rising house prices, interest rates at historic lows and a host of competitive products available to choose from, growth is likely to continue even after the Stamp Duty panic dispels. Swap rates are also expected to decrease in mid to late February, lowering the lenders’ costs of loans further and boosting competitive offers.”