Who is remortgaging?
Homeowners in London who have the largest property debt are remortgaging more frequently than any other region, according to new figures from remortgage specialists LMS.
The report shows that property owners in the capital have the highest average remortgage loan amount of £215,098 and remortgage a smidgeon under every four years compared to the national average of 4.71 years (and 5.19 years in Wales, where homeowners have one of the lowest average remortgage loan amounts of £68,564).
Southerners hold the greatest amount of property equity in spite of prices in their area being the least affordable – the typical loan to value (LTV) of someone remortgaging in the South West is 54%. Homeowners in the South East are next remortgaging with an average LTV of 57% and Londoners and those in East Anglia 59%.
Homeowners in the North West own the smallest share in their homes with an average remortgage LTV of 67%. The North East comes second from bottom with an average LTV of 66% and Yorkshire third at 65%. These three regions are the most affordable for buyers and still have an average remortgage loan amount significantly less than those in the south. For homeowners in the North East, it is less than a third of their counterparts in London.
Andy Knee, Chief Executive of LMS, said: “Continued strong property price growth in the south of the country means that home owners in these regions are able to build up their equity share at a faster rate. It is also likely that with strong house prices in these regions homeowners are taking every opportunity to increase their share so as to benefit from reduced monthly repayments.
“That homeowners in London are remortgaging the most frequently is indicative of this desire to get the best possible deal for what is a sizeable mortgage. The capital has long attracted job seekers from across the country, as well as internationally, and many homeowners are reluctant to commit to longer term mortgages in view of early repayment charges should they decide to move in the meantime.”mortgage, remortgaging
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