You are here: Home - News -

Five-year fixes popular as remortgaging rises in May

by:
  • 11/07/2017
  • 0
Five-year fixes popular as remortgaging rises in May
Remortgaging volumes rose in May, according to conveyancing service provider LMS.

It said the number of remortgage transactions increased by 8% month-on-month to 31,936, up from 29,300 in April. The total value of remortgage transactions fell 1% in the same period, to £5bn from £5.1bn.

Longer fixes were popular, with over a third (34%) choosing a fixed five year deal, up from one in ten (8%) homeowners who previously had this product type before remortgaging.

Three in five (58%) remortgagors said they expected no change in the average mortgage rate over the next twelve months – an increase from 53% who said the same in April.

Borrowers were also aided by record low mortgage rates, as the average rate fell from 2.1% in March to 2.0% in April.

However, only 15% of remortgagors said they took out their deal to reduce their overall mortgage repayments, compared with 17% in April.

Andy Knee (pictured), chief executive of LMS, suggested borrowers had been complacent about a clear election result. “Pollsters and the public had predicted a solid election result of a 100+ seat majority for the Conservative Party and continuity at the heart of government. Pre-election confidence was the main driver behind the increase in the number of remortgage transactions.”

Knee added: “Not everyone was confident that the election would give us a strong and stable government. A small minority of homeowners provisioned against a period of economic uncertainty, remortgaging to reduce the amount of debt held with their lender.”

 

There are 0 Comment(s)

Comments are closed.

You may also be interested in

  • RT @OTJournalist: Eastgate to join Shawbrook as MD of commercial mortgages operation. He's spent more than six years at OSB. https://t.co/y…
  • RT @specialistsols: Buy to let remains an important sector, but has become increasingly specialist in recent years. What are the key comple…
  • RT @dontdelay: Very proud to receive this, and have something tangible to discuss with my children about giving blood. Thank you @GiveBlo

Read previous post:
pic of digital key over data
Big data: The four horsemen of the apocalypse Amazon, Apple, Facebook and Google are on their way

Every bank and non-bank financial institution knows by now that the forthcoming data protection regulations will blow apart the competitive...

Close