There was a 12% rise in remortgage instructions in May, according to the latest monthly remortgage snapshot from LMS.
It found that there was only a 5% rise in remortgage completions last month and the overall cancellation rate increased by 2%.
The report also reveals that 46% of borrowers increased their loan size in May and the average monthly payment increase for those who remortgaged was £294.29.
However, 32% saw no change in their total loan size, while 23% reduced their total loan size.
The average loan increase post remortgage was £21,474.31; the average loan decrease post remortgage was £12,902.82.
Of those who remortgaged, 47% took out a five-year fixed rate product, the most popular option last month.
And 29% said their main aim when remortgaging was to have lower monthly payments.
The average remortgage loan amount in London was £331,067 per month while the average for the rest of the UK stood at £163,945, making remortgage loan amounts 102% higher in London than in the rest of the country.
LMS chief executive Nick Chadbourne says: “Instructions and pipelines continue to build steadily, aligning with expectations as we head into the second half of the year. With around 1.6 million fixed-term mortgages due to mature over the next 12 to 18 months, remortgage activity is expected to remain strong.”
“We’re seeing borrowers take a proactive approach, with many choosing to fix for five years – a trend driven by a desire for long-term payment certainty amid ongoing rate volatility and wider economic uncertainty.”
“Broker conversations suggest that stability and predictability are taking precedence over short-term flexibility, which is keeping five-year deals firmly in favour.”
“Positive sentiment is also being echoed by conveyancers, many of whom report that recent investments in technology and automation tools are helping them flex their capacity to meet demand.”
“These efficiencies are playing a crucial role during peak periods, smoothing transaction volumes and supporting service consistency.”
