LMS, the UK’s leading conveyancer and panel management specialist, has today released its monthly remortgage snapshot.
This month’s update showed:
- £292.64 average monthly payment increase for those who remortgaged in June
- 48% of borrowers increased their loan size in June
- 46% of those who remortgaged took out a 5-year fixed rate product, the most popular product in June
- 26% said their main aim when remortgaging was to lower their monthly payments, the most popular response
Nick Chadbourne, CEO at LMS, comments:
“Since it’s the end of the second quarter, June always sees a spike in remortgage completions. Instructions also rose because borrowers are now confident that rates won’t be falling in the foreseeable future, so they are looking to secure a product now before they potentially increase along with the expected base rate trajectory.
We will see this trend continue into H2 with over half a million borrowers nearing the end of their current mortgage term. The challenge is affordability – even with stress tests a thing of the past, banks will be wrestling with this, especially as the Consumer Duty comes into effect. Rising rates create challenges for banks looking to onboard new customers – products continue to change rapidly and many continue to opt for product transfers. However, shopping around with the help of a broker is critical in such an environment so borrowers would be well advised to do so to get the best possible deal.”
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.
