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Remortgaging hits a seven-year high

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Written by: Christina Hoghton
24/03/2016
Borrowers switched their mortgage deal in their droves in February, taking advantage of cheap deals.

Last month was the best February for remortgaging since 2009, according to property services firm LMS, which said remortgage lending topped £4.4bn.

Despite this annual rise, the value of remortgage business and the number of remortgage loans actually fell 16% from January, while the number of loans to switchers rose 23% year-on-year.

The average amount of equity withdrawn from remortgaging rose by 11% from £25,955 in January to £28,685 in February. This is the largest amount recorded in the month of February as borrowers continued to take advantage of rising house prices and competitive rates.

The average amount of equity withdrawn was also 7% higher than February of last year at £26,682.

Andy Knee, chief executive of LMS, said: “Despite a drop in activity from January – a trend we’ve experienced each year since 2010 – remortgage lending in February remained buoyant. The value of loans were the largest amount recorded in the month of February for seven years, demonstrating maintained momentum for remortgaging as we return to a healthy, post-recession market.

“New rock-bottom rates should encourage even the most hesitant of homeowners to consider the benefit of remortgaging, since huge savings can be made.”

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