Figures released today have revealed remortgage borrowers took out a record amount of equity in their homes during June.
According to the latest Remortgage Report from LMS, a total of £527 million was withdrawn from remortgaging last month, the largest amount seen since May 2012, equating to £22,615 being released per individual.
The findings have suggested that a growing number of homeowners are releasing equity in their properties in order to fund expensive outgoings, with a fifth of respondents stating they had withdrawn equity to pay for home improvement projects.
A further 9% claimed they had used the additional withdrawn funds to pay off outstanding debts.
The report also revealed that the average remortgage loan amount climbed to the highest level ever recorded by LMS, increasing monthly by 2.6% to £149,514, as activity in the refinancing sector remained strong.
Andy Knee, chief executive of LMS, said: "Remortgage customers were last month taking out a record amount of equity, the highest amount since January 2012.
"With Mark Carney confirming that interest rates will not be rising for the time being, others who are considering remortgaging would do well to take advantage of the current deals, as there will be an avalanche of remortgage activity once interest rates do eventually increase."
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