Remortgaging on the up as overall mortgage lending falls

Remortgage lending continued to rise in April, supporting an otherwise slowing mortgage market, according to new industry figures.

LMS, a leading UK provider of conveyancing panel management services, has reported that 38,475 remortgage transactions took place in April; an 8% rise on the 35,500 deals recorded in March.

On an annual basis, the number of remortgage transactions rose by 10% up from 34,700 in April 2016, and the value of remortgage lending also rose by 2% month-on-month to £6.1bn.

Total mortgage lending, meanwhile, fell by 11% from £20.7bn in March to £18.4bn in April, according to the Council of Mortgage Lenders (CML).

As such, remortgage activity accounted for approximately a third (33%) of April’s total lending, having risen from 28% in March.

Andy Knee, chief executive, LMS, said:

“The remortgage market had a good month in testing conditions.

“In the next few months, the general election and Brexit negotiations will cast a shadow of doubt over the future of the purchase market.

“Homeowners should seriously consider remortgaging now while rates remain low and in case market conditions worsen significantly.”

 


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