LMS have released their Monthly Remortgage Snapshot, showing remortgage market activity through October 2022.
The key findings from the report show that there was a £247 average monthly payment increase for those who remortgaged in October. In addition to this, 44% of borrowers increased their loan size in October.
The report also showed that 65% of those who remortgaged took out a 5-year fixed rate product, which proved to be the most popular product in October. The most popular response of interviewess when asked about their main aim when remortgaging was gain longer term security, with 33% stating this.
The report concluded:
“Mortgage market healthier in October, following the ERC expiry peak and the change in Government.
October saw a big increase in completions as people looked to lock in the products they secured before any potential rate change causes them to be withdrawn. For those who had yet to start the remortgage process, the marginal increase in instructions makes it clear that they are waiting to see what November brings before instructing, especially as it will be a big month with both the interest rate decision and the Autumn Budget. Although product rates are slowly coming down, they are still out of kilter with SVRs.
As such, some borrowers might wait and see if rates will fall in January before remortgaging because there seems to be little danger of dropping onto a less favourable rate. However, this approach comes with an element of risk in that there is no guarantee that swap rates and therefore product rates won’t increase again. The most proactive of borrowers will look to instruct sooner rather than later to mitigate this, and so we expect instructions to rise ahead of the next big ERC expiry date at the end of the year.”
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.
