Instructions for remortgages rose by 50% in September, according to LMS’ latest remortgage snapshot.
There were also 108% more remortgages completed in September than in the month previous, while cancellations increased by 0.43 points to 5%.
The LMS data shows that 45% of borrowers increased their loan size in September, with the average loan increase hitting £21,584.
Meanwhile, 21% of borrowers reduced their loan size, the average here being £12,607.
A far great share of borrowers reduced their monthly remortgage payments, the data adds – 46% – this meaning the average monthly repayment fell by £234. And 41% of borrowers saw their monthly bill go up, by an average of £254.
And of all fixed terms, the 5-year is the most popular, with 50% of borrowers opting for this type of remortgage, with two-year fixes not far behind, at 40%.
LMS chief executive Nick Chadbourne (pictured) said: “The number of remortgage completions soared to 108%, as September marked one of the highest numbers of early repayment charges expiries of the year.
“As some lenders will be inundated with cases as a result of the current rate wars, panel managers will have an important role to play in mitigating any mismatch in capacity across the industry, by ensuring that instructions are evenly balanced between firms to maintain service levels.”
