Remortgage instructions increased by 51% in February as borrowers raced to lock in deals, according to the latest LMS remortgage data.
But it came at a cost as the average borrower ended up with a £208 increase in their average monthly payment.
Overall 42% of borrowers increased their loan size. While 62% of those who remortgaged took out a 5-year fixed rate product, the most popular product in February.
The most popular main aim when remortgaging was to lower monthly payments with 28% having said that was behind their decision.
Nick Chadbourne (pictured) of LMS said processing requests quickly and efficiently will be key in keeping borrowers happy.
He added: “February has seen an uptick in remortgaging activity with almost 25% more completions compared to January.
“Activity will almost certainly remain very high throughout March with the next big ERC date – 1st April – fast approaching and the fact that lenders are pulling products from the market due to the heightened level of uncertainty and making borrowers make increasingly frenzied decisions.
“Processing requests quickly and efficiently will be key in keeping borrowers happy while dealing with the high levels of remortgage activity which is predicted to remain throughout 2022.
“Soon, we will see the remortgage process go completely digital using LMS’ tech – a landmark innovation which will provide enormous help to free up capacity across the entire industry.”
