Homeowners who remortgaged in April saw a £208 average monthly payment increase, according to the latest Remortgage Snapshot from LMS.
Some 46% of borrowers increased their loan size in April while 54% of those who remortgaged took out a 5-year fixed rate product, the most popular product in April.
27% said the most popular main aim when remortgaging was to release equity in their property
The average remortgage loan amount in London and the South East was £320,400 while the average for the rest of the UK stood at £151,635 putting remortgage loan amounts 111% higher in London and the South East than the rest of the UK.
The longest previous mortgage length was found in the Yorkshire at 65.14 months (5.43 years) and the shortest was in the South East at 54.91 months (4.58 years), putting the longest previous mortgage term 19% longer than the shortest.
Nick Chadbourne, CEO of LMS, said: “The figures show that there has been a substantial decrease in cancellations as well as an increase in completions, indicating improved levels of efficiency across the board.
“Similarly, while instructions also fell month on month, this is just down to the seasonal nature of the market – we always see a drop in instructions over the Easter period, especially since it fell near the start of a new quarter this year. We will see this increase again as consumers are looking to make savings in light of the cost of living crisis and continued base rate rises – they are likely to look for competitive fixed rate products, especially in the run up to the next ERC date which we expect to be in late June or early July.
“As such, lenders need to continue working closely with suppliers to assist people in finding the right products for them. Collaboration will be more important than ever to ensure further demands on market capacity can be mitigated and handled efficiently.”
