Last month saw a decline of 13% in new instructions but a month-on-month increase of 4% in pipeline cases, according to the LMS Monthly Mortgage Snapshot .
The average remortgage loan amount fell by 5% to £204,045 while the average length of the previous mortgage was just over 70 months.
Nine out of twelve regions across the UK have witnessed decreases in their average remortgage amounts, which LMS says suggests a trend towards stabilisation and recovery in the mortgage industry leading into quarter two.
More than 40 per cent of borrowers chose to increase their mortgage balance while 22 per cent reduced their loan size.
Just less than 30 per cent said their remortgage goal was to lower their monthly payment.
Two-year fixed rates were the most popular product, taken up by 47 per cent of remortgaging borrowers in February.
Chief executive Nick Chadbourne said: “The market may appear to be volatile in terms of rate moves, with some lenders quickly shifting pricing, however from a borrowers’ perspective, rates are relatively stable and have been for some time.
“This stability should provide confidence for those looking to remortgage or move home. While this is the case, shorter-term fixed-rate options, notably the two-year fixed-rate product, remain highly attractive to remortgagers. These short-term deals offer homeowners flexibility, allowing them to adapt to changing market conditions and seize better opportunities in the short-term. With a positive start to the year, mortgage rates are currently lower than they were a year ago, leading to a further boost to consumer sentiment.”
