Remortgaging activity hit a seven-year high in August, fuelled by record low bowing rates and rising house prices, according to new figures from LMS.
The latest data, showing that remortgage activity reached its highest level since July 2009, reveals that the number of remortgages advanced totalled 36,195 in August, up 8% from July and 45% higher than the corresponding month last year.
According to LMS, 11% of homeowners who remortgaged in August were able to cut their monthly repayments by more than £500; an attractive proposition for anyone thinking of remortgaging their property.
However, despite the rise in remortgage transactions, the value of those transactions fell, with the overall value of gross remortgage lending totalling £5.9bn in August, down 2% from £6bn in July.
Andy Knee, chief executive of LMS, commented: “The Bank of England's decision to cut the base interest rate continues to have a positive impact on the remortgage market [and] has encouraged a greater number of homeowners to remortgage their homes.
“However, in spite of this rise, homeowners appear to be in a more cautious mood than last month; borrowing less in the wake of a couple of turbulent months, both politically and economically, and lowering their LTV in the process.”