Monthly gross remortgage lending rose 6 per cent in January from £2.7bn in December to reach £2.9bn, according to figures from LMS.
The LMS Remortgage Report for January shows remortgaging now accounts for 28 per cent of gross mortgage lending, representing the highest proportion since October 2012. The average loan amount grew from £140,553 to £141,548.
Total gross mortgage lending fell over the same period of time, from £11.4bn in December down to £10.4bn.
LMS chief executive Andy Knee says: “Seasonal factors and bad weather in December had a severe impact on purchase lending in January but the same cannot be said about remortgaging.
“The remortgage market has resisted a normal seasonal downturn, reaping the benefits of competitive rates which are now available because of the Government’s Funding for Lending Scheme.
“We expect this growth to continue into February and March.”
LMS estimates that the total number of remortgage loans in January increased by 5.5 per cent to 20,332 compared with 19,279 in December.
The average LTV has remained relatively stable over the past two years and was unchanged on December’s figure of 56 per cent in January.