LMS has prepared its monthly remortgage snapshot for February. The Snapshot collates LMS data to provide a comprehensive overview of the re-mortgage activity across the month.
Key stats:
- £373.58 average monthly repayment increase for those who remortgaged in February
- 43% of borrowers increased their loan size in February
- 47% of those who remortgaged took out a 2-year fixed rate product, the most popular product in February.
- 29% said their main aim when remortgaging was to lower their monthly payments, the most popular response
Remortgage loan sizes:
- 43% increased their total loan size
- 35% saw no change in their loan size
- 22% reduced their total loan size
Nick Chadbourne, CEO, LMS:
“The market may appear to be volatile in terms of rate moves, with some lenders quickly shifting pricing, however from a borrower’s perspective rates are relatively stable and have been for some time. While the media often like to announce when large lenders increase or decrease rates, the reality is that rates are likely to remain stable for the foreseeable future. This stability should provide confidence for those looking to remortgage or move home. While this is the case, shorter-term fixed-rate options, notably the two-year fixed-rate product, remain highly attractive to remortgagers. Almost half opted for these short-term deals in February, with 29% noting a desire to lower their monthly payments as their primary motivation.
These short-term deals offer homeowners flexibility, allowing them to adapt to changing market conditions and seize better opportunities in the short-term. With a positive start to the year, mortgage rates are currently lower than they were a year ago, leading to a further boost to consumer sentiment. Nine out of twelve regions across the UK have witnessed decreases in their average remortgage amounts, suggesting a trend towards stabilisation and recovery in the mortgage industry leading into Q2. Additionally, there has been a 4% increase in remortgaging cases, indicating that more homeowners are taking proactive steps to find a new mortgage rate.”
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.
