There was a £381 average monthly repayment increase for those who remortgaged in January, according to the latest LMS Monthly Remortgage Snapshot.
The report, covering January 2024, found that 45% of those who remortgaged took out a 2-year fixed rate product, the most popular product during the period.
30% said their main aim when remortgaging was to lower their monthly payments.
Throughout the month, the report also found that 42% of remortgagers increased their total loan size, 36% saw no change in their loan size and 22% reduced their total loan size
Nick Chadbourne (pictured), CEO of LMS, said: “As swap rates continue to stabilise, we have seen an increase in competition among lenders and more favourable pricing options for remortgaging customers.
“As a result, we saw a 14% uptick in remortgage activity in January and a 70% increase in instructions.
“There has been a noticeable shift towards shorter-term fixed-rate options too, with 45% of remortgagers taking out a 2-year fixed-rate product – the most popular choice in January.
“Customers are adapting to the ‘new normal’ for rates and are seeking short-term products so they can reassess their options if rates decrease further in the future.”
He added: “While we’ve seen a decline in average mortgage rates, recent data highlights that house prices have risen at their fastest rate since this time last year, with a 2.5% increase.
“This may result in a more favourable loan-to-value (LTV) ratio for many customers, and we anticipate this will lead to a more pronounced uptick in market activity in the coming months.”
