Remortgage lending turned slightly southward during the last few months of 2012, but continued low rates are having a resistance effect on the valuable process.  January experienced an increase in the amount of remortgage activity causing more than a 6% increase month on month, to almost 3 billion pounds.  This new data, according to the LMS Remortgage Report, paints a clearer picture for the remortgage market as the months roll on in 2013.  Gross mortgage lending fell in January almost 10%, thus increasing the proportion of remortgage activity.

Andy Knee, chief executive of LMS, commented on the primary reasons for the remortgage figures, saying: “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.”

Knee continued: “We expect this growth to continue into February and March.”

Although January remortgage activity increased compared with December, it still falls well short of the level seen at the same time last year.  At that time, remortgages totaled more than 25% higher.

The remortgage product is still not seeing the popularity equal to the possible benefits it could bring an everyday homeowner.  The number of potential benefits is numerous, including a sizeable amount of cash in hand and the ability to possibly pay off old debt.  Conditions are still favorable to obtain a remortgage with many benefits, based on the amount of equity in the house and other factors.