The latest LMS remortgage snapshot for January 2025 has been released providing insight into the current condition of the remortgage market.
Instructions, Completions, Cancellations Rate, and Pipeline Data
Percentage increase/decrease compared to the previous month:
- Instructions: ↑ 31% (Increased by 31%)
- Completions: ↓ 1% (1% fewer remortgages completed)
- Cancellation Rate: ↑ 49% (Increased by 49%)
- Pipeline: No change (0%)
Fast Facts
- £288.18 average monthly payment increase for those who remortgaged in January.
- 39% of borrowers increased their loan size.
- 45% of borrowers took out a 5-year fixed-rate product (the most popular choice).
- 30% remortgaged with the main aim of lowering monthly payments.
Remortgage Loan Sizes
Change in loan size reported by borrowers:
- 39% increased their total loan size.
- 36% saw no change.
- 25% reduced their total loan size.
Average loan changes post-remortgage:
- Increase: £21,195
- Decrease: £13,763
Monthly Loan Repayments
Changes in monthly remortgage repayments:
- 59% increased their monthly payments.
- 12% saw no change.
- 29% reduced their monthly payments.
- Average increase: £288.18
- Average decrease: £354.13
Regional Trends
- Average remortgage loan amount in London: £348,258
- Average for the rest of the UK: £168,603
- London remortgage amounts are 107% higher than the rest of the UK.
Longest previous mortgage length: North East (82.19 months / 6.85 years) Shortest previous mortgage length: East Anglia (67.87 months / 5.66 years)
Average remortgage amount: £201,888 Average length of previous mortgages: 71.48 months
Average Length of Previous Mortgage by Region
| Region | Months | % Change from December |
|---|---|---|
| Total | 71.48 | 5% |
| East Anglia | 67.87 | 1% |
| East Midlands | 71.01 | 12% |
| London | 73.80 | 1% |
| North East | 82.19 | 20% |
| North West | 71.22 | 2% |
| South East | 71.50 | 4% |
| South West | 69.78 | 3% |
| Wales | 69.71 | -7% |
| West Midlands | 73.69 | 13% |
| Yorkshire | 71.44 | 9% |
Average Remortgage Amount by Region
| Region | Average Amount | % Change from December |
| Total | £201,888 | -4% |
| East Anglia | £238,799 | 4% |
| East Midlands | £156,029 | -13% |
| London | £348,258 | -4% |
| North East | £138,023 | 2% |
| North West | £155,438 | -6% |
| Northern Ireland | £121,600 | -13% |
| Scotland | £147,289 | 0% |
| South East | £246,904 | -8% |
| South West | £186,090 | -8% |
| Wales | £144,333 | -4% |
| West Midlands | £168,884 | -3% |
| Yorkshire | £151,246 | -1% |
Is 2025 the Year of the Remortgage?
With the highest number of product expiries since the pandemic, 2025 is expected to be a bumper year for remortgages. This is largely due to:
- 5-year deals from 2020 expiring, taken out during the stamp duty rush.
- 2-year deals from 2023 expiring, following the rate increases under Liz Truss.
Automation improvements have helped streamline remortgage processing, ensuring efficiency despite the increased demand.
Borrower Expectations for Interest Rate Increases
- 49% expect an increase within the next year.
- 17% expect it in more than a year.
- 34% have no expectation of a rate increase.
Product Purchasing Trends
- 43% opted for a 2-year fixed rate.
- 6% chose a 3-year fixed rate.
- 45% went with a 5-year fixed rate.
- 2% selected a 10-year fixed rate.
- 2% chose a tracker product.
- 2% chose other options.
Reasons for Choosing a Fixed Rate
- 72% wanted payment security.
- 16% were concerned about economic uncertainty.
- 10% followed their broker’s recommendation.
Primary Goals When Remortgaging
- 30% aimed to lower monthly payments.
- 23% wanted to release equity/borrow more money.
- 20% wanted security over monthly payments.
Our CEO, Nick Chadbourne, shares his thoughts on January’s figures stating:
“We know that 2025 is set to experience the highest number of product expiries since the pandemic. And it’s the pandemic (and Liz Truss) we have to thank for such a bumper year. Think back to 2020 when stamp duty changes had everyone moving to the country; these people took out 5-year deals. Then later, in 2023, we experienced a jump in rates due to Ms Truss, which made 2-year fixed rates the way to go. Now, in 2025, we will see both the 5-year and 2-year deals expire, resulting in a double bumper year!”
Methodology
LMS’ UK remortgage lending estimates are based on internal conveyancing data covering thousands of remortgage transactions.
This article was 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.
