Remortgage instructions increased by over 26% in July, data from LMS’ Monthly Remortgage Snapshot has revealed.
Completions were also up 20% in July, while cancellations grew by 26%.
In addition, pipeline remortgage cases decreased by 3% month-on-month.
For those who remortgaged in July, the average monthly payment increased by £367.03, as more than 45% of borrowers increased their loan size.
44% of those who remortgaged took out a 5-year fixed rate product, the most popular product last month.
When questioned as to why they chose to remortgage, 26% said their main aim was to release equity in their property.
On a regional level, the average remortgage loan amount in London was £368,047, while the average for the rest of the UK stood at £172,268 making remortgage loan amounts 114% higher in London than in the rest of the country.
The longest previous mortgage length was found in Wales at 72.69 months (6.06 years), while the shortest was in the South East at 65.02 months (5.42 years), making the longest previous mortgage term 12% longer than the shortest.
Nick Chadbourne, CEO of LMS, said: “Q4 is always a busy time for product expiries, and this year is no different.
“The recent reductions in mortgage rates from a number of large lenders bode well for customers coming to the end of a fixed rate.
“But let’s remember that many of these customers were on historically low rates, so they are in for a bit of a shock – hopefully, the recent reductions soften the blow.
“Looking further ahead, I feel we are on the cusp of some meaningful activity.
“We expect a 15-20% increase in product changes next year, and with the automation and improvements in remortgage conveyancing, we may see a move away from product transfers and a shift to full remortgage switching.”
