The seasonal remortgage boom has continued apace, with completions growing by 13% in November, LMS’ Monthly Remortgage Snapshot has revealed.
Remortgage instructions decreased by 16% in November, while cancellations decreased by 7%.
In addition, pipeline remortgage cases increased by 2% month-on-month.
Those who remortgaged in November saw a £321.40 average monthly payment increase, while over 50% of borrowers increased their loan size throughout the month.
47% of those who remortgaged took out a 5-year fixed rate product, and 27% said their main aim when remortgaging was to release equity in their property.
Regionally, the average remortgage loan amount in London was £363,267, while the average for the rest of the UK stood at £170,643 – making remortgage loan amounts 113% higher in London than in the rest of the country.
The longest previous mortgage length was found in the North at 78.63 months (6.55 years), while the shortest was in Yorkshire at 71.13 months (5.93 years).
Nick Chadbourne, CEO of LMS, said: “Although we have seen a month-on-month decline in instructions, activity remains strong as the seasonal remortgage boom continues.
“We are entering 2025 with good pipelines, and we can expect a continuation through next year with 20% more product expiries than 2024.
“Interestingly, consumer behaviour is appearing to shift.
“We are seeing a move away from 2-year fixed products towards 5-year fixed products.”
He added: “The rationale is twofold. Firstly, fewer customers are experiencing rate shock as many are now moving to lower rates, meaning they can tie in for the longer term.
“Secondly, this shift is due to customer expectations around interest rates; while
forecasters expect further drops, customers are not as certain.”
