LMS has reported that remortgage instructions rose by 23% in March, while 20% fewer remortgages were completed compared to the previous month.
LMS’ monthly remortgage snapshot revealed that the overall cancellation rate rose by 1%, while the pipeline increased by 10%.
The average monthly payment went up by £315.67 for those who remortgaged in March.
Around 47% of people chose a 5-year fixed rate, which was the most popular product.
The same proportion of borrowers increased their loan size last month, with 30% saying their main aim was to release equity.
Regional data showed that London’s average remortgage loan reached £319,045.
For the rest of the UK, the average figure stood at £161,298, meaning that loan amounts in London were 98% higher than the rest of the country.
Additionally, the North East had the longest previous mortgage length at nearly 83 months, while the shortest was in Yorkshire at just under 70 months.
This made the longest mortgage term 18% higher than the shortest.
Nick Chadbourne (pictured), CEO of LMS, said: “March’s figures show an expected seasonal change in cancellations and completions, and pipelines are projected to increase throughout the next quarter as we approach the first major product expiry spike of the year in June.
“The lowest swap rates we’ve seen in recent years have given lenders the confidence to competitively price their offerings, which is a positive sign for the remortgage market.
“Overall, Q1 had a strong finish with instructions and pipelines up; we expect more of the same throughout the year with completions following as pipelines mature.”
Chadbourne added: “Economic shockwaves are the biggest threat with Trumponomics in full flow; however, the foundations are strong and it will take a lot to blow this year off course!”
