LMS publish their latest Remortgage Snapshot for May 2023

LMS publish their latest Remortgage Snapshot for May 2023, showing the pipeline is likely to swell as H2 predicted to see over half a million people remortaging.

Key performance figures:
    • Instructions increased by 11% in May
    • 1% less remortgages completed in May
    • The overall cancellation rate decreased by 0.22%
    • Pipeline cases decreased by 2% month-on-month
Key statistics:
    • £317.20 is the average monthly payment increase for those who remortgaged in May
    • 43% of borrowers increased their loan size in May
    • 50% of those who remortgaged took out a 5-year fixed rate product, the most popular product in May
    • 29% said their main aim when remortgaging was to lower their monthly payments, the most popular response
Nick Chadbourne, CEO at LMS, comments:

“As predicted, instructions increased again in May following a seasonal dip the month before.

“Until now, we have seen a lot of people stay on variable rates in the hope that, if they stick it out, rates will fall.

“However, the base rate increased to 4.5% early on so it’s not a huge surprise that people looking to remortgage when their product expires are aiming to come off SVRs for more stability. 

“As we head into the second half of the year, we expect a big jump in instructions and the pipeline to swell.

“It will be the busiest in terms of product expiries since the 2008 credit crunch with well over half a million people expected to remortgage.

“Anyone doing so may well choose a two year fix in the expectation of a lower rate next time.

“If the market predictions are correct, this would be wise as rates will likely come down during 2024.”

 

Kindly shared by LMS

Main article photo courtesy of Pixabay