Remortgage instructions increased by 12% in February 2025, the LMS monthly remortgage snapshot has revealed.
Completions were up by 11%, while the cancellation rate fell by 8%, and the pipeline saw a modest 2% increase.
Borrowers who remortgaged in February faced an average monthly payment increase of £294.66.
Of note, 42% of borrowers decided to increase their loan size, and 46% opted for a 5-year fixed rate product, making it the most popular choice.
Additionally, 28% of those remortgaging aimed to lower their monthly payments.
Regional data showed London’s average remortgage loan amount at £330,239, significantly higher than the UK average of £164,828.
Average previous mortgage terms ranged from 71.18 months in the East Midlands to 77.87 months in the North West.
Data also showed an overall decrease in average remortgage amounts by 2%, with regional variations such as a rise of 1% in the East Midlands and a 7% increase in Northern Ireland.
Nick Chadbourne (pictured), CEO of LMS, said: “Q1 has exceeded expectations which bodes well for the rest of the year.
“Q1 has the lowest product expiries of the year, so seeing such buoyant activity through January and February bodes well for the rest of 2025.
“We have two significant spikes ahead: at the end of Q2 and towards the end of the year, so expect to see pipelines grow from now until June!”
Chadbourne added: “In terms of behaviours, we are still seeing increases in monthly payments, partly due to borrowers increasing their loan sizes but also due to continued rate shock from historically low rates.
“We are back to equilibrium on product purchasing, with 45% opting for 2 years and 46% going for 5 years.
“Borrowers are clearly unconvinced about rate reductions despite the rest of the market factoring this in!”
