The monthly remortgage snapshot from LMS shows a 12% increase in new instructions in May, which LMS CEO Nick Chadbourne attributes to positive sentiment across the sector.
Almost half of remortgagers (45%) increased their total loan size, with 23% reducing the loan and 32% seeing no change. The impact on monthly payments was an increase for 59% of borrowers, a reduction for 29% and no change for 12%.
Chadbourne said the figures show that positive sentiment is growing across the sector.
“Instructions and pipelines continue to build steadily, aligning with expectations as we head into the second half of the year. With around 1.6 million fixed-term mortgages due to mature over the next 12 to 18 months, remortgage activity is expected to remain strong.
“We’re seeing borrowers take a proactive approach, with many choosing to fix for five years – a trend driven by a desire for long-term payment certainty amid ongoing rate volatility and wider economic uncertainty. Broker conversations suggest that stability and predictability are taking precedence over short-term flexibility, which is keeping five-year deals firmly in favour.”
An increase in the adoption of technology by conveyancers is playing a significant role in positive market conditions, Chadbourne added:
“Positive sentiment is also being echoed by conveyancers, many of whom report that recent investments in technology and automation tools are helping them flex their capacity to meet demand.
“These efficiencies are playing a crucial role during peak periods, smoothing transaction volumes and supporting service consistency.”
The analysis, which is based on LMS conveyancing data covering thousands of remortgage completion transactions, found that the five-year fixed deal was the most popular option once again, chosen by 47% of remortgagers. Two-year fixed deals were the second favourite choice, at 42%.
The majority of fixed-rate customers (72%) said they wanted the security of knowing how much they’d be paying each month, with 15% worried about the economic climate and 10% acting on the advice of brokers.
Lower monthly payments were the reason cited by 29% of borrowers, with 26% wanting to release equity or borrow more money and 19% opting for security over monthly payments.
When asked about their expectations for interest rate increases, 46% said they expected an increase in the next year, 23% believe a raise is more than a year away and 31% aren’t expecting a rate increase.
See the full report at https://corporate.lms.com/monthly-remortgage-snapshot-may-2025/
