Remortgage lending in the month of June revealed a slight decrease in value in comparison month on month as well as year on year. The average amount of equity withdrawn in June declined by 15% from the same period last year and 13% from the previous month according to LMS.

Remortgage volume for June of 32,873 revealed an increase of 6% from May’s remortgage level of 30,900. This was an increase of 1% over the same period of last year of 32,700 remortgages.

Therefore, despite the increase in remortgage volume for June, there was a decrease in the value. Showing that while there were more remortages sought, the amount of the remortgages overall declined. June was in fact the first month in 2016 that fell in year on year value declining by 3% to £5.1 billion from £5.3 billion.

Average value of equity withdrawn in remortgaging declined to £29,375 from the previous month’s average of £33,691 and last year’s £34,505 recorded for June 2015.

Due to an increase in household incomes, repayment amounts are now less of a percentage of the entire household income than before with a decline in May to 18.4% from the 19.3% recorded for April.

Andy Knee, Chief Executive of LMS, remarked, “We witnessed a strong start to the year with remortgage lending up year-on-year each month in 2016, when in a safer, surer climate, home owners had rushed to remortgage in a desire to lock into better rates before a possible rate rise. But activity in June has slowed with the value of remortgage lending down as indecision increased in the lead up to, and following, the referendum.

“While we’ll only begin to see the referendum result’s real impact from July’s figures onwards, it is very likely the small drop occurred as people took pause amid Brexit uncertainty before making any decisions. As the terms for Brexit are negotiated, there will be volatility as borrowers look out for the impact, if any, on their equity.

 “Our research into remortgaging habits showed a spike in the percentage of remortgagers opting for a broker or an adviser to guide them through the process, a sure sign people are looking for answers and stability, something which will continue to dominate in the months after the referendum. There is some good news, however, for remortgagers that falling repayments and rising household incomes have taken pressure off families feeling insecure about what the future holds.”