Homeowners who remortgaged in November saw an average monthly decrease in their mortgage payments of £193.39, according to LMS’ Monthly Remortgage Snapshot.
The Snapshot found that 29% of borrowers’ primary aim when remortgaging was to lower monthly payments and over half 59% of those who did so took out a 5-year fixed rate product.
Additionally, some 47% of borrowers increased their loan size in November.
The average remortgage loan amount in London and the South East was £337,173, while the average for the rest of the UK stood at £197,148, putting remortgage loan amounts 52% higher in London and the South East than the rest of the UK.
The longest previous mortgage length was found in the West Midlands at 64.43 months (5.37 years) and the shortest was in the East Anglia at 56.9 months (4.74 years), putting the longest previous mortgage term 12% longer than the shortest.
Nick Chadbourne, CEO, LMS, said: “Remortgage activity in November was largely fuelled by an expected Bank of England base rate increase, which triggered banks and building societies to begin pricing an expected rate rise into their repayment rates.
“For borrowers coming to the end of their fixed term, this rise in rates prompted many shop around to secure the best deal possible, rather than opting for a product transfer, as shown by the rise of 11% in instructions month-on-month.”
“The high activity levels we witnessed in November are set to continue for the foreseeable future, spurred on by the high volume of ERC expiries in December. This should keep the remortgage market buoyant as we head into the new year with a flood of new instructions.”
“Panel managers will play a vital role in ensuring that every case is processed efficiently and securely. Using their trusted network of conveyancers, and sophisticated technology, they can provide additional security to ensure clients experience a smooth and streamlined journey, despite the increased market activity over the coming months.”
