LMS’ Remortgage Snapshot shows that in March, the remortgage pipeline rose by around 10% and the overall cancellation rate dipped by around 1%.
The figures show that the average monthly payment increase was £315.67, with 58% increasing their monthly remortgage repayments.
Only 14% saw no change in their monthly repayments and 28% saw a drop in the monthly repayments.
The average monthly repayment decline was estimated at £301.50.
Around 47% said they had increased their total loan size, with the average loan increase pegged at £20,224.
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A third saw no change in their total loan size and 20% cut their total loan size. The average loan decrease was around £13,715.
The majority – 47% – chose a five-year fixed rate, with 41% selecting a two-year fixed rate deal.
Nearly three-quarters said they selected a fixed rate so they could have the security of knowing how much they would repay each month, with 12% saying they were worried about the economic climate.
Only 10% said their broker had recommended a fixed rate to them.
The primary goal when remortgaging for 30% of those surveyed was to release equity on property and borrow more money. For 26%, it was to lower monthly repayments and 16% wanted security over monthly payments.
Nick Chadbourne, LMS’ CEO, said: “March’s figures show an expected seasonal change in cancellations and completions, and pipelines are projected to increase throughout the next quarter as we approach the first major product expiry spike of the year in June.
“The lowest swap rates we’ve seen in recent years have given lenders the confidence to competitively price their offerings, which is a positive sign for the remortgage market.”
He continued: “Overall, Q1 had a strong finish with instructions and pipelines up; we expect more of the same throughout the year, with completions following as pipelines mature.
“Economic shockwaves are the biggest threat with Trumponomics in full flow; however, the foundations are strong and it will take a lot to blow this year off course.”
