Remortgage instructions decreased by 12% last month, after a 23% rise in March, with half of all April borrowers opting for a five-year fixed rate deal ‘to shield themselves from potential volatility’.
The April Monthly Remortgage Snapshot from LMS reveals that the five-year terms were the most popular product in April, taking a 50% share of the remortgage market. When asked for the motivation behind locking in a fixed-rate product, 77% said they wanted the security of knowing how much they’d be paying each month.
Only 2% of people opted for a tracker mortgage, with the same number choosing a 10-year fixed deal. The second most popular product was the two-year fixed rate, at 37%. Three-year deals were chosen by 4% of re-mortgage borrowers, with the remaining 5% not defined.
The majority of people remortgaging in April increased their total loan size (42%), resulting in an average loan increase of £20,555 and a monthly payment increase of £290.36. Just under a quarter (24%) borrowed less, decreasing the amount owed by an average of £14,418 and reducing the monthly payment by £269.22.
In regional trends, the average remortgage loan amount in Lond was £326,141, while the average for the rest of the UK stood at £163,320 – making remortgage loan amounts 100% higher in London than the rest of the country.
Nick Chadbourne, CEO of LMS, said of the figures:
Looking ahead to the remainder of the year, we expect remortgage volumes to remain robust as a large cohort of borrowers come off historically low fixed rates. With continued economic uncertainty and fluctuating inflation data, many are likely to
favour fixed options, even as expectations for lower rates persist. The balance between market optimism and personal financial caution will remain a key theme in the remortgage landscape for the rest of 2025.
The LMS UK remortgage lending estimates are forecasts based on internal conveyancing data covering thousands of remortgage completion transactions.
