LMS have published their Monthly Remortgage Snapshot report for September 2021

LMS have published their Monthly Remortgage Snapshot report, showing remortgage market activity through the month of September 2021.

Key points from the report:
  • £235 – average monthly payment decrease for those who remortgaged in September
  • 45% of borrowers increased their loan size in September
  • 50% of those who remortgaged took out a 5-year fixed rate product
  • 28% of remortgager’s primary aim when remotgaging was to release equity from their property
Key performance metrics:

50%

Instructions increased by 50% in September

108%

108% more remortgages completed in September

5%

The cancellations rate increased by 0.43

7%

Pipeline cases increased by 7%

 

Fast facts:

£235

Average monthly payment decrease for those who remortgaged in September

45%

Of borrowers increased their loan size in September

50%

Of those who remortgaged took out a 5-year fixed rate product, the most popular product in September

28%

The most popular main aim when remortgaging was to release equity

 

Remortgage loan sizes:
  • 45% increased their total loan size
  • 34% saw no change in their total loan size
  • 21% reduced their total loan size
  • Average loan increase post remortgage: £21,584
  • Average loan decrease post remortgage: £12,607
Monthly loan repayments:
  • 41% increased their monthly remortgage repayments
  • 14% saw no change in their monthly remortgage repayments
  • 46% reduced their monthly remortgage repayments
  • Average monthly repayment increase: £245
  • Average monthly repayment decrease: £234
Regional trends:

The average remortgage loan amount in London and the South East was £288,939, while the average for the rest of the UK stood at £148,978, putting remortgage loan amounts 48% higher in London and the South East than the rest of the UK.

The longest previous mortgage length was found in the North East at 75.88 months (6.32 years) and the shortest was in East Anglia at 59.92 months (4.99 years), putting the longest previous mortgage term 26.64% longer than the shortest.

Nick Chadbourne, CEO of LMS, commented:

“Remortgage instructions rose by 50% in September as rumours of an interest rate rise loom large, which may impact the cost of mortgages. Savvy borrowers nearing the end of their current term, and their brokers, will have anticipated this and have begun to shop around to secure a longer fixed-rate deal to weather any increases in their monthly repayments.

“The number of remortgage completions soared to 108%, as September marked one of the highest numbers of ERC expiries of the year.

“As some lenders will be inundated with cases as a result of the current rate wars, panel managers will have an important role to play in mitigating any mismatch in capacity across the industry, by ensuring that instructions are evenly balanced between firms to maintain service levels.”

 

Kindly shared by LMS

Main photo courtesy of Pixabay