Remortgage instructions decreased by 31% in April, according to LMS’ Monthly Remortgage Snapshot.

Data showed that there was a 24% increase in completed remortgages in April, while the overall cancellation rate decreased by 0.36% to 4.67%. 

LMS chief executive Nick Chadbourne says: “The figures show that there has been a substantial decrease in cancellations as well as an increase in completions, indicating improved levels of efficiency across the board.”

The most popular main aim when remortgaging was to release equity in property, cited by 27% of borrowers. 

The survey by the conveyancing firm says 46% of borrowers increased their loan sizes in April, with average monthly payments lifting by £208.

It adds that 54% of those who remortgaged took out a five-year fixed-rate product, which was the most popular product in April.

Chadbourne explains: “While instructions also fell month on month, this is just down to the seasonal nature of the market – we always see a drop in instructions over the Easter period, especially since it fell near the start of a new quarter this year.” 

“We will see this increase again as consumers are looking to make savings in light of the cost of living crisis and continued base rate rises – they are likely to look for competitive fixed-rate products, especially in the run-up to the next early repayment charge date which we expect to be in late June or early July.”

“As such, lenders need to continue working closely with suppliers to assist people in finding the right products for them. Collaboration will be more important than ever to ensure further demands on market capacity can be mitigated and handled efficiently,” he adds.