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LMS monthly remortgage snapshot: August 2023

LMS, the UK’s leading conveyancer and panel management specialist, has today released its monthly remortgage snapshot. 

This month’s update showed:

  • Instructions decreased by 8% in August
  • 10% less remortgages completed in August
  • The overall cancellation rate increased by 0.25%
  • Pipeline cases increased by 2% month on month
  • 40% of borrowers increased their loan size in August
  • 48% of those who remortgaged took out a 5-year fixed rate product, the most popular product in August
  • 52% said their main aims when remortgaging were to lower their monthly payments, and give themselves longer terms security, the most popular responses

Nick Chadbourne, CEO, at LMS commented:

“As expected, in August, we’ve seen a seasonal dip in both instructions and completions with borrowers anticipating a cut in rates from various lenders. Earlier this month, this prediction was confirmed following a Bank of England comment that stated that interest rates may be near their peak. As a result, mortgage lenders started to announce further reductions to their fixed rates.

With the above plans in mind, borrowers have opted back for a 5-year fixed rate plan, the most popular product in August, as an opportunity to lock down a better deal for longer. The goals for remortgaging were primarily focused on borrowers looking to lower their monthly payments and give themselves longer-term security which could have also contributed to the 5-year fixed rates regaining ground.

“With the next Bank of England announcement expected to be disclosed tomorrow, borrowers should capitalise on the current conditions to secure their financial future. Borrowers would be wise to speak to a broker early enough and explore various options that work for their individual needs in order to secure the best possible deal.”

Read full report here: Report-August23-Wider distribution

This article was submitted to be published by LMS as part of their advertising agreement with Today’s Conveyancer. The views expressed in this article are those of the submitter and not those of Today’s Conveyancer.

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