That’s according to Nick Chadbourne (pictured), CEO at LMS, who noted that the market would see the results of two major purchasing events.
He pointed out that the two-year mortgage deals which were taken out when the property market reopened in 2020 would now be nearing maturity and so present a remortgage opportunity, while five year deals which were taken out in 2017 ‒ when more than half the mortgage deals were over this term ‒ are also reaching their end.
Chadbourne added: “This healthy pipeline of activity is set against another base rate increase, the ongoing energy crisis and the post-furlough job market. All of which will all play a part in activity trends.”
Taking time to focus on remortgages
The predictions of a particularly busy 2022 come off the back of an already active year for the remortgage market.
According to the LMS annual remortgage snapshot, remortgage activity increased steadily over 2021, with both instructions and completions growing particularly after the stamp duty holiday extension was announced in March. The firm argued that this took pressure off the purchase market, providing more time to focus on remortgages.
The study found that almost half (49 per cent) of those who remortgaged increased their total loan size, off the back of both an increase in borrower confidence and the fact that many homeowners opted for home improvements.
Turning to technology
Chadbourne also noted the impact that the pandemic had on how the mortgage market uses technology, with tech innovation key in meeting the anticipated high levels of remortgage activity.
He added: “This year, LMS will drive the first fully automated remortgage case processed from offer to completion as the last two years have forced the industry to re-imagine what’s achievable and collaborate to provide a more secure and efficient service. We will continue to innovate and grow to best service the market, and we look forward to seeing what will come next.”
