Homeowners across England and Wales remortgaged for around £15,000 more in 2016 than they did two years ago, with 57% capital raising, according to My Home Move.
Homeowners borrowed around £181,000 last year compared to £166,000 in 2014, with 57% raising money, suggesting they wanted to release equity ‘cheaply’ for home improvements, to consolidate debt or to invest in property.
Having analysed more than 10,000 remortgage records between 2014 and 2016, My Home Move discovered that those in the East Midlands borrowed almost double the amount in 2016; while those in the East of England, Home Counties, North West, South East and Wales also increased their debt compared to two years ago.
Doug Crawford, CEO of My Home Move, said: “This overall increase in borrowing suggests that homeowners are taking advantage of the ‘cheap’ remortgage deals which have been around for the past few years, and thanks to the Bank of England base rate cut in August, will remain so for months to come.
“With such low interest rates, using a mortgage to borrow money can be a smart move.”
| Average remortgage value based on My Home Move’s MI | |||
| 2014 | 2016 | Difference | |
| East of England | £142,669 | £179,887 | £37,218 |
| East Midlands | £70,000 | £139,380 | £69,380 |
| Greater London | £242,249 | £240,813 | -£1,436 |
| Home Counties | £155,874 | £211,530 | £55,656 |
| North East | £80,746 | £82,615 | £1,869 |
| North West | £87,108 | £121,189 | £34,081 |
| South East | £124,178 | £154,372 | £30,194 |
| South West | £137,091 | £125,009 | -£12,082 |
| Wales | £78,750 | £83,715 | £4,965 |
| West Midlands | £138,137 | £103,407 | -£34,730 |
| Yorkshire | £140,558 | £93,660 | -£46,898 |
| UK Average | £166,557 | £181,953 | £15,396 |
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