Delving a little deeper into the lead up to Q2, LMS’ Remortgage Healthcheck Index for Q1 2022, produced in partnership with the Centre of Economics and Business Research (CEBR), showed a fall of 5.1 points to reach 65.0 in this quarter, its lowest reading since Q1 2021. This drop was mostly driven by a 15.9 point decrease in the Remortgage Approvals Indicator although it’s prudent to point out that the overall Index value remained firmly in positive territory.
In sharp contrast, the Homeowner Equity Indicator, which measures changes in the rate of house price growth, was said to be at an all-time high, having climbed 8.0 points to the highest possible value of 100.0. This record score was due to buoyant activity and price growth in the housing market throughout the quarter.
Moving into Q2, further analysis from LMS suggested that remortgages carried out by brokers jumped by a quarter between March and April. When quizzed on the purpose of these, over a quarter said the main aim when remortgaging was to release equity in the property. On a regional basis, the average remortgage loan amount in London and the South East was £320,400, more than double the £151,635 average for the rest of the UK.