Remortgage instructions and completions fell in August, amid this part of the market’s “usual seasonal dip,” says LMS.  

Instructions for new remortgages fell by 8% compared with July, while completions were down 28%, according to the conveyancer’s Monthly Remortgage Snapshot. 

While, overall cancellations lifted 6% over the same period, as the remortgage pipeline slipped 1%.  

Borrowers who did remortgage last month faced bigger payments, with average monthly payments rising by £354.21. 

The report adds that 45% of borrowers increased their loan size in August. 

A two-year fixed-rate loan was the most popular product last month, taken out by 46% of all customers in this market. 

Just over a quarter of borrowers, or 26%, said their main aim when remortgaging was to release equity in their home. 

The average remortgage loan amount in London was £370,227, while the average for the rest of the UK stood at £176,365, making remortgage loan amounts 110% higher in London than in the rest of the country. 

The longest previous mortgage length was found in the North West at 75.9 months (6.33 years), while the shortest was in East Anglia at 67.6 months (5.63 years), making the longest previous mortgage term 12% longer than the shortest.

LMS chief executive Nick Chadbourne says: “August saw the usual seasonal dip in remortgage activity, but the market remains resilient.  

“The popularity of two-year fixed-rate products suggests borrowers are hedging their bets, looking for short-term protection while keeping options open should rates ease over the next couple of years.  

“With households now back into a routine after summer, we expect activity to build as the year progresses, echoing the rebound we saw this time last year.”