Recent indications suggest remortgaging volumes are improving after significant falls following the introduction of social distancing restrictions.
Although new case volumes decreased by 14 per cent in the week commencing April 6 from the week previous and 18.9 per cent since March 16, there were signs that remortgaging activity was starting to pick up again, according to LMS’ weekly update.
The remortgaging completions last week were 22 per cent higher than the final week in March and pipeline activity was 6 per cent higher than the same time in 2019.
Nick Chadbourne, CEO of LMS, commented:
“There is cause to be optimistic when looking at both yearly comparisons of our key indicators and the upcoming pipeline data. For borrowers looking to remortgage, the industry remains firmly open for business as usual.
“Initial positive signs for instructions from the start of the month have carried through to the middle of April, and ERCs will continue to sustain volumes through to May.
“As process issues continue to be improved, the hard work of parties all across the remortgage journey should see cases return to near normal levels, and pipeline data should get healthier still. More restricted access to redemption statements and extended lender timelines remain factors to be dealt with, but progress is being made and the market keeps moving forwards.
“In a positive sign for remortgaging, combined cancellations and completions ran below instructions at the end of last week. That means the pipeline is beginning to grow and should sustain the market through the coming months.
“As we move further through this crisis, we expect the remortgage market to remain strong and much of the work from lenders and conveyancers to update and digitise their processes will result in stronger businesses and a stronger industry for years to come.”
