LMS’ monthly remortgage snapshot for January 2023 collates data to provide a comprehensive overview of the remortgage activity across the month, revealing trends in the context of an unparalleled year.
Key stats:
- £239 average monthly repayment increase for those who remortgaged in January
- 36% of borrowers increased their loan size in January
- 63% of those who remortgaged took out a five-year fixed rate product, the most popular product in January
- 37% said their main aim when remortgaging was to gain longer term security, the most popular response
Remortgage loan sizes:
- 36% increased their total loan size
- 39% saw no change in their loan size
- 26% reduced their total loan size
Nick Chadbourne, CEO, LMS, said:
“As predicted at the end of last year, there was a spike in instructions for January. This is the case every year since December instructions are always seasonably low, but this year’s figures are higher than January 2022, showing that those who were holding out for better rates are starting to return to the market. As appears to be an increasing trend, those who remortgaged in January were primarily seeking to attain longer term security with nearly two-thirds opting for five-year fixed rates, which continues to be the most popular product. With the increased completion rates following the festive period, the pipeline contracted but this was to be expected.
Moving forwards, increased market activity is likely to continue with mortgage rates falling below 4% for the first time since September. This is despite the repeated Bank of England interest rate rises as these have already been priced into the market. As such, we expect to see instructions and the pipeline grow over the next few weeks as well as a rise in cancellations since borrowers who secured rates in December may well reapply at these more attractive rates.”
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.
