LMS has published its Monthly Remortgage Snapshot for September – here is all you need to know.
Key stats:
- £236 – average monthly payment increase for those who remortgaged in September
- 50% of borrowers increase their loan size in September
- 68% of those who remortgaged took out a 5-year fixed rate product, the most popular product in September
- 29% said their main aim was to release equity in property i.e borrow more money
Remortgage loan sizes:
- 50% increased their total loan size
- 36% saw no change in their total loan size
- 15% reduced their total loan size
- Average loan increase post remortgage: £21,933
- Average loan decrease post remortgage: £13,718
“Mortgages are still looking strong in September despite a month of many changes,” commented Nick Chadbourne, CEO at LMS, continuing:
“There is no doubt that this is a stressful time for borrowers as they experience an upwards pressure on their mortgage payments, but the end of September is traditionally a big time for ERC expiries. This typically means a drop in completions and a swell in pipelines as firms get ready to process these cases on the 1st October. The market volatility caused by the mini budget also saw instructions drop as lenders immediately withdrew products, so all in all, the statistics show what we would expect.
With the ERC expiry date and the fact that those lucky enough to secure a rate before the budget will see their cases flow through to completion, we expect completions to pick up in October, but it will also likely be a month of anomalies as the ongoing economic instability and changing policy will cause lenders to enter and leave the market with various products as appropriate.”
Regional trends:
The average remortgage loan amount in London and the South East was £279,689 while the average for the rest of the UK stood at £130,570 putting remortgage loan amounts 72.6% higher in London and the South East than the rest of the UK.
The longest previous mortgage length was found in London at 85.10 months (7.09 years) and the shortest was in the North West at 72.71 months (6.06 years), putting the longest previous mortgage term 17 longer than the shortest.
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.
