Remortgage lending in the UK has risen by nearly a quarter since last November, fuelled in part by Christmas spending, according to a report.
In its latest mortgage report, by Legal Marketing Services (LMS) said that gross remortgaging levels had risen by 24% this year, to reach £4.2bn ($6.9bn) in November.
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LMS CEO Andy Knee said: "Remortgage lending is up by nearly 30% compared to this time last year, and remortgage customers are releasing more than £8,000 more cash than they were in January."
"According to a recent LMS survey approximately 18% of the £21,579 average equity released last month will go into home improvements, 11% on the repayment of debt and the remaining 71% will finance extra spending, most probably ahead of Christmas."
LMS, a conveyance firm that says it handles around 28% of remortgage transactions in the UK, took the data from its own records.
Meanwhile, the UK government’s Money Advice Service said that 32% of adults plan to cover the cost of Christmas on credit, and 1.2m people say they’ll turn to payday loans.
Head of service delivery Jane Symonds said: "Christmas is an exciting time to catch up with family and friends but can also be a worry financially, and very stressful if money is tight.
"Getting to grips with the costs in advance of the big day will help you take control of your spending and alleviate some of the pressure."
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