Remortgage instruction volumes fell by nearly a quarter between June and July, according to the latest figures from LMS.

The conveyancing services provider found a drop of 24 per cent in instructions in the month to July, while completions were up 78 per cent. The cancellation rate rose by 1.29 per cent in the period and pipeline figures dropped 1.29 per cent.

Those who remortgaged in July saw monthly payments fall by average of £200.76, while 39 per cent of borrowers increased their loan size last month.

The most popular product for those who remortgaged in July was a five-year fix, with 47 per cent choosing this term.

The average remortgage loan amount in London and the South East was £281,365, while the average for the rest of the country stood at £144,286. T

LMS chief executive Nick Chadbourne says: “July’s data illustrates that the landscape has changed and the remortgage market continues to evolve. Consumer behaviours have inevitably altered in response to the pandemic, with 1 in 6 borrowers reportedly taking a mortgage payment holiday.

“However, completion volumes nearly doubled from June to July, as many people look for security and certainty in their personal finances. This, combined with higher rates of conversion and decreasing instruction volumes, has resulted in a reduced pipeline heading into August.

“5-year fixes are rising again following the initial drop we saw in April, which isn’t surprising as borrowers look to lock in longer term deals with interest rates at all-time lows. Nearly three quarters of borrowers reported their motivations for remortgaging coming from a need for monthly payment security, which is a strong indicator of borrower behaviour. With the full effects of COVID-19 on the housing market unknown, we expect this trend to continue as borrowers look for certainty in their monthly outgoings.”