According to the latest LMS remortgage snapshot report for March, there was a £315.67 average monthly payment increase for those who remortgaged during the month.
Some 47% of borrowers increased their loan size in March and 47% of those who remortgaged took out a 5-year fixed rate product, the most popular product last month
The report showed that 30% said their main aim when remortgaging was to release equity in their property.
Change in loan size reported by borrowers reveals 47% increased their total loan size; 33% saw no change in their total loan size; and 20% reduced their total loan size
The average loan increase post remortgage was £20,224.91 while the average loan decrease post remortgage was £13,715.94
The data also shows that 58% increased their monthly remortgage repayments; 14% saw no change in their monthly remortgage repayments and 28% reduced their monthly remortgage payments
The average monthly repayment increase was £315.67 and the average monthly repayment decrease was £301.50
The average remortgage loan amount in London was £319,045 while the average for the rest of the UK stood at £161,298, making remortgage loan amounts 98% higher in London than in the rest of the country.
The longest previous mortgage length was found in the North East at 82.86 months (6.91 years), while the shortest was in Yorkshire at 69.95 months (5.83 years), making the longest previous mortgage term 18% longer than the shortest.
Commenting on the latest numbers LMS chief executive Nick Chadbourne said: “March’s figures show an expected seasonal change in cancellations and completions, and pipelines are projected to increase throughout the next quarter as we approach the first major product expiry spike of the year in June.
“The lowest swap rates we’ve seen in recent years have given lenders the confidence to competitively price their offerings, which is a positive sign for the remortgage market.”
He added: “Overall, Q1 had a strong finish with instructions and pipelines up; we expect more of the same throughout the year with completions following as pipelines mature. Economic shockwaves are the biggest threat with Trumponomics in full flow; however, the foundations are strong and it will take a lot to blow this year off course!”
