Remortgage instructions decreased by 11% in March, new data from LMS’s Monthly Remortgage Snapshot has revealed.
According to LMS’s findings, the overall cancellation rate decreased by 19%, while pipeline cases decreased by 2% month on month.
£354.72 was the average monthly payment increase for those who remortgaged in March, while over 44% of borrowers increased their loan size.
52% of those who remortgaged took out a 2-year fixed rate product, and a further 30% said their main aim when remortgaging was to lower their monthly payments.
On a regional basis, the average remortgage loan amount in London was £381,055, while the average for the rest of the UK stood at £174,679.
This made remortgage loan amounts 118% higher in London than in the rest of the country.
The longest previous mortgage length was found in North East at 68.03 months (5.7 years), while the shortest was in Yorkshire at 52.14 months (4.35 years).
Nick Chadbourne (pictured), CEO of LMS, said: “March witnessed its customary transitional phase in the remortgage sector, marked by an 11% decline in new instructions juxtaposed against a robust 16% upsurge in completions.
“Despite fluctuations across regions and shifts among lenders, an underlying stability pervades the market.
“Mortgage rates and property values remain relatively static, underscoring this stability, further evidenced by a notable decrease in cancellation rates.”
He added: “Anticipating a rise in consumer confidence, coupled with favourable trends in the housing market, we foresee a ripple effect into the remortgage sector throughout 2024.
“Notably, two significant peaks in product expirations loom later in the year, signalling an expected uptick in market activity as the month’s progress.”
