The average monthly mortgage payment increased by £250 for those who remortgaged in November, according to the latest LMS remortgage tracker.
Overall 44% of those who remortgaged increased their loan size. While 73% of those who remortgaged took out a 5-year fixed rate product, the most popular product in the month.
Some 38% said their main aim when remortgaging was to gain longer term security, the most popular response.
Nick Chadbourne (pictured), CEO at LMS, said: “While most metrics fell in November, the pipeline grew as people are beginning to consider new products before their current deals expire.
“The overall decline in activity was to be expected after the huge increase we saw in October as people hurried to lock in products before they were withdrawn, and with the impact of the Autumn Statement leaving many wondering what it means for their payments – many are biding their time and seeing how the rest of the year plays out before instructing.
“But despite this uncertainty, we would urge people to act sooner rather than later to avoid dropping onto a lender’s SVR which is now more expensive as rates are increasing while fixed rates continue to fall.
“Given that we are close to the market being corrected, the new year is expected to bring a healthy product competition although we’re still unlikely to see a substantial decrease in rates.
“Borrowers would therefore do well to engage a broker at the earliest opportunity to stay informed of any likely product changes as, with lenders moving quickly, it is vital to ensure they are represented.
“This way, borrowers will be in a strong position to secure the most suitable rate when applying at the optimum time in the new year.”
