Remortgaging levels remain muted as last year saw the lowest number of borrowers choosing to refinance since 1997, according to the Council of Mortgage Lenders.
The CML’s figures show that in 2012, remortgaging accounted for 316,000 loans worth £41bn.
Of a total of 6.9 million regulated mortgages taken out since 2005 and still active in March 2012, 14 per cent, or one million, had remortgaged their property once since 2005. Furthermore, 2 per cent, equivalent to 130,000, had refinanced more than once.
Since 2005, an estimated 54 per cent of those remortgaging withdrew equity while around 11 per cent injected equity.
The average amount withdrawn as a consequence of equity release was £39,000. Within this, those seeing a fall in value in their property withdrew £33,000, while those whose property rose by up to 10 per cent in value took an average of £32,000.
Among those whose property rose in value by more than 10 per cent, the average amount withdrawn was £44,000.
The highest concentration of those who opted to inject equity was among interest-only borrowers as 52 per cent of those who were both remortgaging and injecting equity were interest-only holders, compared with 30 per cent where equity was withdrawn.
The CML notes remortgaging levels are currently muted but says recent Government interventions designed to stimulate the mortgage market will facilitate access to better mortgage deals which is expected to generate greater lending volumes, going forwards.