March demonstrated signs of stability with an increase in completions accompanied by a decrease in cancellation rates. This trend suggests an “underlying” stabilising effect within the remortgage market, according to LMS’s recent March Remortgage Snapshot.
The data revealed that 16% more remortgages were completed in March and 44% of borrowers opting to increase their loan size. 52% of those who remortgaged took out a 2-year fixed rate product, the most popular product last month. 30% said their main aim when remortgaging was to lower their monthly payments, making it the most popular response.
The average remortgage loan amount in London was £381,055, while the average for the rest of the UK stood at £174,679 making remortgage loan amounts 118% higher in London than in the rest of the country.
What’s more, the longest previous mortgage length was found in North East at 68.03 months (5.7 years), while the shortest was in the Yorkshire at 52.14 months (4.35 years), making the longest previous mortgage term 30.4% longer than the shortest. Nick Chadbourne, CEO, LMS commented:
“March witnessed its customary transitional phase in the remortgage sector, marked by an 11% decline in new instructions juxtaposed against a robust 16% upsurge in completions. Despite fluctuations across regions and shifts among lenders, an underlying stability pervades the market.
Mortgage rates and property values remain relatively static, underscoring this stability, further evidenced by a notable decrease in cancellation rates.Anticipating a rise in consumer confidence, coupled with favourable trends in the housing market, we foresee a ripple effect into the remortgage sector throughout 2024. Notably, two significant peaks in product expirations loom later in the year, signalling an expected uptick in market activity as the months progress.”
