Mortgage News
Drop in remortgagors taking five-year deals ‒ LMS
The number of borrowers remortgaging onto a five-year mortgage fell in November, from 46 per cent to 43 per cent, the latest remortgage report from LMS has revealed.
While it remains the most popular type of product for those remortgaging, LMS reported increasing popularity among borrowers for two-year deals.
The report also found a slight drop in the number of remortgage deals taken out in the month, from 53,269 in October to 52,251 in November.
The three-month rolling average loan amount also dropped, from £178,515 to £175,531.
LMS noted that 42 per cent of those remortgaging increased the size of their loan when doing so, with 45 per cent of borrowers increasing the size of their monthly repayments as a result of moving to a new deal.
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It also found a sharp increase in the average length of the previous mortgage, which rose to 62.71 months in November, up by 15.6 per cent from the month before.
Nick Chadbourne (pictured), chief executive officer at LMS, noted that the month saw a wave of borrowers on five-year fixed rates switching products, and suggested that December will see increased activity now the “future of the economy is more certain”.
He added: “There was a notably higher proportion of borrowers increasing their loan sizes, as 42 per cent took out additional equity in November compared with just 24 per cent who reduced their loan size. This could suggest that there is increased confidence in the economy and overall market conditions.”