Cancellation volumes for remortgages rose 22.5 per cent between the first and second weeks of June, says LMS.

This equates to a 20.3 per cent rise in comparison to the second week of May, the firm adds.

Although a trend is evident, which “continues to be a concern”, says LMS chief executive Nick Chadbourne, the overall cancellation rate for June is close to 5 per cent, which is the average for recent months on record. But this is by no means a guaranteed constant.

“The increase is being driven by changes to consumer personal circumstances, new products becoming available as rates are reducing and older cases being cleared out of the pipeline. All of these combinations could lead to a greater quantum of variance between Q1 and Q2 ends,” explains Chadbourne.

Meanwhile, remortgage instructions rose 8.9 per cent within the same time frame as above, with volumes 16.3 per cent higher than the close of last month.

Additionally, the weekly average number of instructions has caught up with February, with the latter only 0.7 per cent higher.

Remortgage completions dropped in the second week of June, however, falling 53.5 per cent on a weekly basis. On a monthly basis, volumes are down 42.3 per cent.

Within this mix of good and bad, LMS reports, pipeline cases are up 2.4 per cent.

Chadbourne comments: “Market performance continues to follow the trend we have seen over recent weeks, showing a combination of both positive and declining metrics.

“There are expected to be 10 to 15 per cent fewer ERC expiries at the end of Q2 compared to the end of Q1. 

“This will negatively impact the pipeline and completion volumes as fewer customers remortgage. 

“However, the real impact on the pipeline will be felt from the increasing number of cancellations and the lack of high LTV products exclude some customers from the market.”