According to LMS’ Monthly Remortgage Snapshot, there were around nine per cent more remortgages completed in April and the overall cancellation rate decreased by around 2.15 per cent to 7.81 per cent.
Regarding remortgage loans sizes, around 37 per cent for remortgagors increased their total loan size, with the average loan increase post-remortgage coming to £20,803.
Around a quarter of borrowers cut their total loan size, with the average loan decrease post-remortgage pegged at £14,528.
Nearly 38 per cent saw no change in their total loan size.
The majority, 69 per cent, upped their total monthly remortgage repayments with the average monthly repayment increase was £300.
Nearly a quarter cut their monthly remortgage repayments, with the average monthly repayment decrease coming to £301.
Around eight per cent saw no change in their monthly remortgage repayments.
Nick Chadbourne, LMS’ CEO, said the anticipated Easter lull was “primarily responsible for pushing down instruction and pipeline figures”.
“These seasonal trends always play a part in market activity, although we expect that there are also increasing numbers of borrowers opting for product transfers instead of remortgages amid the affordability squeeze,” he added.
Chadbourne said borrowers were “primarily focused on lowering their monthly payments” but many were “also more inclined to bide their time and wait for better products to become available”.
He continued that the firm was expecting instructions and pipeline to increase in May.
Chadbourne pointed to the Bank of England’s recent base rate increase pushing those on trackers and standard variable rates to “switch to a more competitive fixed rate product and the introduction of innovative products such as Skipton’s 100 per cent mortgage will only encourage this further”.
“Aside from that, lenders are generally relaxing their affordability criteria thanks to there being more economic certainty and confidence in employment and house prices, playing into the prediction of an increased pipeline,” he added.
