Graph to show gross mortgage lending vs gross remortgage lending - Oct 16*

Remortgaging has bounced back in spectacular style from September’s post-Brexit low. The value of remortgage lending rose by 23% from £5.5 billion in September to £6.8 billion in October. The value of remortgage lending in October is the highest since November 2008 – almost eight years. It also represents an annual increase of 19% from £5.7 billion in October 2015.

The number of remortgages increased by more than a quarter (26%) from 31,500 in September to 39,547 in October. The number of remortgages in October is the highest since January 2009.

Remortgaging accounted for 33% of total gross lending in October, the highest percentage since April and since the EU referendum. The average loan amount rose by 4% from £164,394 in September to £171,154 in October. Annually, the average loan amount increased by 6% from £162,176 in October 2015.

Average remortgage loan amount and LTV by region - Oct 16**

Average remortgage loan amounts differed in value across the country, from £106,147 in the North East to £297,359 in London.

Average remortgage loan amounts increased the most in East Anglia, rising by £17,411 in October to £181,805. Meanwhile, the biggest drop was in the North East, where the average remortgage loan amount fell by £9,985 to £106,147.

The average LTV also varied across the different regions of the country – from 61% in London to 85% in the North East. In all but three regions, the average LTV increased or remained the same.

The biggest increase in average LTV was in the Yorkshire, climbing from 73% in September to 82% in October. The greatest drops were in the West Midlands and the North East, where average LTV fell by 6 percentage points in both regions.

NOTE: The methodology for calculating average LTV and loan amounts in regional areas has changed from May 2016 onwards and now incorporates the combined ‘House Price Index’, which replaces the previous House Price Indices separately published by ONS and Land Registry.

Term of redeeming mortgage by region (years) - Oct 16**

Average remortgage terms fell across the country. The greatest decrease was in London, where the average term fell by 0.95 years from 4.51 to 3.56 years.

Graph to show repayments as % of income - Sept 16*

Mortgage interest rates fell to a new a record low of 2.27% in September from 2.31% in August, according to the CML.

Average household income has fallen by nearly £1,000. It decreased by £951 from £47,496 in August to £46,545 in September. This means affordability is worse than last month, despite lower rates. Annual mortgage repayments changed little between August and September, increasing slightly by £73 from £8,617 in August to £8,690 in September.

As a percentage of income, this represents a slight increase from 18.1% to 18.7% between August and September. This remains lower than the cost of a new purchase mortgage, which accounted for 21.0% of income in September.

"The remortgage market has enjoyed a revival since September’s post-Brexit low. Homeowners are remortgaging at levels that have not been seen for almost eight years, when the recession hit, while the frequency of remortgaging is at a seven year high."

"There are several key driving forces behind this revival. Some of this is seasonal. In the run-up to Christmas, families are looking to tighten the purse strings, reduce their monthly bills and prepare for the festivities. But last year, we only saw a 7.5% rise from September to October – this is of a different scale. Record low rates are providing the perfect opportunity for homeowners to remortgage and secure monthly savings on their mortgage bills."

"Another factor is that homeowners are cautious of what the future may hold. Political and economic uncertainty stemming from June’s EU referendum result have affected people’s priorities. Families are seeking long-term security. While we wait for the outcome of Brexit negotiations, some homeowners are locking in low rates and fixing their monthly repayments."

"But perhaps the most important factor is the current anticipation of a rate rise in 2017. LMS found that 23% of remortgagors in October expect a rate rise to occur in the New Year^. Coupled with ever-increasing uncertainty, the likelihood of a rate rise next year has convinced some homeowners that now is the time remortgage."