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Remortgage instructions jump as summer market ‘set to be different to any other’ – LMS

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  • 26/06/2020
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Remortgage instructions jump as summer market ‘set to be different to any other’ – LMS
Remortgage instructions in June reached the highest level this year as pre-lockdown market conditions are starting to return, data from conveyancer LMS has shown.

 

Numbers are up five per cent compared to the final week of May, and 3.3 per cent higher than in February.

At the same time, there were more than six times as many completions in the third week of June as the equivalent week in May.

However, completion volumes of remortgages have been steadily falling in June after a spike at the start of the month.

And this month is on course to record the lowest number of completions in the year to date, matching expected annual trends with June which is traditionally a quieter time for the market.

Overall case volumes are on track to be around 12.2 per cent lower than the same time last year.

 

Falling cancellations, rising activity

Activity is expected to pick up in July, but year-on-year performance will most likely continue to be below 2019, according to LMS.

The cancellation rate of all remortgage transactions for June is currently 5.82 per cent, on track to be lower than May and in line with recent averages, but higher than June 2019.

Nick Chadbourne, chief executive of LMS (pictured), said: “June is historically a quieter month for remortgages, in the current climate volumes have been further impacted and the data reflects this.

“There is reason for cautious optimism when looking at the coming months with a healthy pipeline and falling cancellation rate.

“Seasonal trends are likely to be impacted over the next few months and this summer will likely be different to any which we have seen in the last few years.

“Many people may choose to forego their annual summer holidays and divert funds to other areas, such as home improvements and savings, given the current climate and the increased financial pressure for lots of households.

“Lots of homeowners will be seeking cost-saving opportunities, and different individual circumstances could therefore impact decisions on remortgaging.

“The wider economy remains a threat to all parts of the remortgage chain, and this next period may continue to throw up unexpected developments and trends.”

 

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