Remortgage lending continued on its upward trajectory during April this year, increasing by 17% to £3.9 billion, according to new research published today.
Activity within the sector has steadily increased over the past six months, growing by 32% since January 2013, with April's figure representing the highest level of lending since October 2012.
The typical remortgage loan amount also increased, with borrowers taking out an average of £145,754, the highest figure ever recorded by the property service company, LMS.
The Government's £80-billion Funding for Lending Scheme (FLS) has been cited as the main reason for the surge in activity from borrowers. Since its launch last August, lenders have consistently reduced their mortgage rates to record lows and broadened credit availability to encourage borrowing from individuals and small non-financial businesses.
Andy Knee, chief executive of LMS, said: "May marks yet another month of growth for the remortgage sector. These heights have not been seen since October of last year. Despite a considerable increase in gross mortgage lending, remortgages continue to account for more than a quarter of the market.
"We have seen a brilliant start to the year and we expect it to continue."
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