According to the Monthly Remortgage Snapshot from LMS, two-year fixed rate products were the second most popular option, making up 37 per cent of purchases in June, up from 34 per cent in April. Overall, 95 per cent of those who remortgaged in May went for a fixed rate product.
The volume of remortgages fell slightly to 53,516 in June down from 53,624 the previous month, remaining close to the 12-month high recorded in May.
LMS CEO Nick Chadbourne said this showed the market was in “good health” as during summer, borrowers tended to focus on holidays.
Brokers continued to show their importance to customers as 67 per cent of borrowers picked a remortgage product because it had been recommended by a broker. Chadbourne added it was “great” to see brokers were a “large part behind the drive”.
The analysis suggested that 49 per cent of borrowers increased their total loan size with an average increase of £21,686, 32 per cent saw no change and 19 per cent reduced their total loan size at an average of £12,027.
In terms of monthly loan repayments, 46 per cent of borrowers increased their repayments paying an average £196 extra, 14 per cent saw no change and 40 per cent reduced their repayments by an average of £202.
For the UK as a whole, the average remortgage amount stood at £180,412 while regionally, London had the highest average at £352,149, followed by the South East’s £238,988 and East Anglia’s £200,891. Northern Ireland’s average dropped to £97,893.