According to LMS’ Monthly Remortgage Snapshot, remortgage instructions decreased by 12% in April, while the overall cancellation rate increased by 3%.
The remortgage pipeline also grew by 3% from the previous month.
Looking at remortgage loan sizes, 42% upped their total loan size, 34% didn’t change their loan size and 24% reduced their total loan size.
The average loan increase post-remortgage came to £20,555 and the average loan decrease post-remortgage was estimated at £14,418.
Regarding the monthly loan repayment size, 61% increased their monthly remortgage repayments, 8% saw no change and 31% cut their monthly remortgage payments.
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The average monthly repayment increase came to £290.36 and the average monthly repayment decrease was pegged at £269.22.
Half of borrowers selected a five-year fixed rate and 37% opted for a two-year fixed rate.
Around 29% said they wanted to lower their monthly payments, while 25% wanted to release equity on property or borrow more money.
Approximately 18% said they wanted security over monthly payments and to lock in a good deal.
More than three-quarters selected a fixed rate remortgage and wanted the security of knowing how much they will be paying each month, while 14% said they were worried about the economic climate and chose a fixed rate and 6% said their broker had recommended this.
Nick Chadbourne, LMS’ CEO, said: “For the first time in two years, half of all borrowers are now opting for five-year fixed rate mortgages. This marks a significant shift in borrower sentiment, highlighting a growing preference for financial stability and long-term certainty, even as market indicators continue to suggest that further interest rate reductions are likely in 2025.
“This trend suggests that many households are more concerned with shielding themselves from potential volatility than attempting to time the bottom of the rate cycle.”
He continued: “Looking ahead to the remainder of the year, we expect remortgage volumes to remain robust as a large cohort of borrowers come off historically low fixed rates.
“With continued economic uncertainty and fluctuating inflation data, many are likely to favour fixed options, even as expectations for lower rates persist. The balance between market optimism and personal financial caution will remain a key theme in the remortgage landscape for the rest of 2025.”
