While June saw remortgage instructions drop by 13% and total remortgage completions drop by 35%, pipeline cases increased by 10%, according to data within LMS’ latest monthly remortgage snapsot. This comes as lenders prepare for an “uptick in remortgage activity” with the cost of living tightening its vice.
“While the figures show that instructions and completions have dropped, there is a strong pipeline of activity as June saw the biggest monthly increase in pipeline cases since the start of 2022,” said Nick Chadbourne, CEO of LMS. “With the next ERC date coming up in July, we expect instructions will pick up again.”
“There will be an uptick in remortgage activity as more consumers turn to remortgaging to offset their cost of living struggles”, added Chadbourne. Some of the key stats seem to reflect this:
- £236 average monthly payment increase for those who remortgaged in June
- 52% of borrowers increased their loan size in June
- 67% of those who remortgaged took out a 5-year fixed rate product, the most popular product in June
- 30% said their main aim when remortgaging was to lower their monthly payments, the most popular response
Chadbourne continued:
“Unlike in previous months when consumers were primarily remortgaging in order to lower their monthly payments, nearly a third (30%) of those who remortgaged in June did so as a way of borrowing more money. It could be that more consumers are looking to secure longer term fixed rate products to improve financial security and manage the cost of living struggles.
As this crisis intensifies further and fears of a recession mount, this trend is likely to continue and the industry will need to cope with increased demand.”
Read the full remortgage snapshot here.
