The LMS Monthly Remortgage Snapshot for May shows a £342.03 average monthly payment increase for those who remortgaged during the month.
The report also reveals that 45% of borrowers increased their loan size; 48% of those who remortgaged took out a 2-year fixed rate product, the most popular product over the period.
Some 26% said their main aim when remortgaging was to lower their monthly payments, making it the most popular response.
Change in loan size reported by borrowers reveals that 45% increased their total loan size;
34% saw no change in their total loan size, while 21% reduced their total loan size
The average loan increase post remortgage was £20,869; and the average loan decrease post remortgage was £12,727
The LMS snapshot reported that 70% increased their monthly remortgage repayments;
9% saw no change in their monthly remortgage repayments, while 21% reduced their monthly remortgage payments
The average monthly repayment increase was £342.03; the average monthly repayment decrease was £339.44
With regards to regional trends, the average remortgage loan amount in London was £375,612, while the average for the rest of the UK stood at £171,223 making remortgage loan amounts 119% higher in London than in the rest of the country.
The longest previous mortgage length was found in London at 72.20 months (6.02 years), while the shortest was in the North East at 57.89 months (4.82 years), making the longest previous mortgage term 24.7% longer than the shortest.
LMS chief executive Nick Chadbourne commented: “The remortgage market follows the usual patterns, just like Gareth Southgate’s strategies at a major tournament. There is still a high level of product transfers as lenders aim to increase retention in a low-margin environment, and the summer has a drop in product maturities, which means the remortgage market will be very low until schools reopen.”
He added: “The Prime Minister surprised us all with the decision to have an election in July, while the Bank of England kept rates the same at the beginning of June, citing one metric as the reason, but I think we all know it’s because of the election. So, the sun is shining, the football is on, kids are about to finish school, and ERCs are low – all signs indicate a quiet few months in the remortgage world.”
