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Remortgage completions fall by nearly a third in June – LMS
Around 32% fewer remortgages were completed in June and instructions fell by around 14%, a report found.
According to LMS’ Monthly Remortgage Snapshot, the overall cancellation rate was pegged at 9%, with pipeline cases falling 4% month-on-month.
More than two-thirds said that their monthly repayments increased, with the average monthly repayment increase coming to £364.09.
Under a quarter said that they reduced their monthly remortgage payments, with the average monthly repayment decrease coming to £305.71.
Only 9% said that they saw no change in their monthly remortgage repayments.
Regarding remortgage loan sizes, around 47% increased their total loan size, with the average loan increase post-remortgage coming to £20,545.
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Over a third didn’t change their loan size, while 21% reduced their total loan size. The average loan decrease post-remortgage was estimated at £14,124.
Nick Chadbourne (pictured), chief executive of LMS, said: “As predicted, we have seen a reduction in remortgage activity, and it’s a trend we can expect to continue over the coming months. Whilst the scaremongers out there would have you believe borrowers are sitting [and] waiting to see rates drop, the reality is that we are in a quiet phase for product expiries, and product transfers continue to win the day whilst lender margins are tight.
“The stability of a new government, an expected rate cut towards the end of the summer, and increasing lender competition will start to reverse this activity trend. However, I don’t expect this to happen until the kids are well into the first term of their new school year.”