Remortgaging in August accounted for the lowest proportion of gross mortgage lending since 1999, according to the latest figures from LMS.
Gross remortgage lending now represents just 25 per cent of total gross mortgage lending. Lending remained largely unchanged on July, falling 1 per cent, or by £32m, to reach £3.17bn.
The LMS Remortgage Report suggests that borrowers are waiting for more attractive remortgage deals to appear.
But LMS chief executive Andy Knee says that while completion levels last month were disappointing, these represent cases that were originated some time ago.
He says: “In August, we saw a significant uplift in new business and this is now beginning to flow through into completions. Therefore, September and October are expected to be much stronger months for remortgage lending as customers complete their switches to one of the numerous long-term fix rates at below 3 per cent.
“However, remortgage lending as a proportion of overall lending may still appear subdued as we are also seeing a significant uplift in house purchase activity driven by the Government’s New Buy scheme.”