Mortgage payments went up by £236 on average for those who remortgaged in June, according to the latest remortgage snapshot from LMS.
Overall 52% of borrowers increased their loan size in June while 67% of those who remortgaged took out a 5-year fixed rate product, the most popular product in June.
30% said their main aim when remortgaging was to lower their monthly payments, the most popular response.
Nick Chadbourne (pictured), CEO, LMS, said: “There will be an uptick in remortgage activity as more consumers turn to remortgaging to offset their cost of living struggles”, says LMS
“While the figures show that instructions and completions have dropped, there is a strong pipeline of activity as June saw the biggest monthly increase in pipeline cases since the start of 2022. With the next ERC date coming up in July, we expect instructions will pick up again.
Unlike in previous months when consumers were primarily remortgaging in order to lower their monthly payments, nearly a third (30%) of those who remortgaged in June did so as a way of borrowing more money.
“It could be that more consumers are looking to secure longer term fixed rate products to improve financial security and manage the cost of living struggles.
“As this crisis intensifies further and fears of a recession mount, this trend is likely to continue and the industry will need to cope with increased demand. Using tech to automate simple cases or speed up post-offer queries can be a good place to start.”
“If you have any questions or are interested in speaking with Nick Chadbourne direct, please do let me know and I’ll be happy to set this up.
