43% of borrowers increased their loan size in November, according to the latest data from LMS’ Monthly Remortgage Snapshot.
The average monthly payment increased by £421.79 for those who remortgaged in November.
More than a third (36%) of those who remortgaged in November took out a 5-year fixed rate product, and 27% said their main aim when remortgaging was to lower their monthly payments.
On a regional basis, the average remortgage loan amount in London was £341,684, while the average for the rest of the UK stood at £201,440.
The longest previous mortgage length was found in in the West Midlands at 78.93 months (6.57 years), while the shortest was in Wales at 64.71 months (5.39 years).
Nick Chadbourne (pictured), CEO at LMS, said: “Although the contraction of the overall pipeline was not as significant this month compared to October, we are still seeing a drop in remortgage activity.
“While we saw a marginal increase in instructions, cases did not progress through the journey: 29% fewer remortgages were completed in November and cancellations increased for the third consecutive month.
“Instead, product transfers have been particularly attractive for borrowers looking for a comparable product, which has only exacerbated what is always a time of reduced activity over the festive period.”
He added: “All of that said, swap rates are dropping which may be a sign of a further drop in inflation on the horizon.
“Lenders are being more competitive with pricing as they start to look towards 2024, especially as house prices are also falling.
“This is giving rise to additional borrowing requirements or changes in terms, or both, which naturally are more conducive to a full remortgage so we expect the pipeline to pick up at the start of the new year.”
