The month also saw remortgage completions increase 15 per cent, accompanied by a 13 per cent growth in pipeline cases.
Of those remortgaging in the month, almost half (44 per cent) opted to increase their loan size, by an average of almost £22,000. Meanwhile one in four (23 per cent) reduced the size of their loan, but an average of £12,842.
Around 47 per cent opted for a five-year fixed rate, making it the most popular type of remortgage deal, while more than one in four (28 per cent) said their main aim in remortgaging was to cut the size of their repayments. The average monthly repayment reduction came to £219 according to the LMS study.
Nick Chadborne (pictured), CEO of LMS, pointed to the firm’s research which shows that two-thirds (67 per cent) expect interest rates to rise within the next 12 months, and suggested that this combined with rising rates on remortgage deals had “fuelled the surge” in remortgage instructions.
He added: “Purchase pipelines remain high, and the ending of the stamp duty holiday failed to dampen demand in the home mover market. This, combined with the high levels of ERC expiries due on 31 December and the continued buzz surrounding interest rates, should contribute to a busy few months. Those in the industry should ready themselves for this increased activity.”