LMS issues its Monthly Remortgage Snapshot for January 2024
LMS issues its Monthly Remortgage Snapshot for January 2024, revealing trends in the context of an unparalleled year.
Key stats:
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- £381 average monthly repayment increase for those who remortgaged in January
- 77% of borrowers increased their loan size in January
- 45% of those who remortgaged took out a 2-year fixed rate product, the most popular product in January.
- 30% said their main aim when remortgaging was to lower their monthly payments, the most popular response
Remortgage loan sizes:
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- 42% increased their total loan size
- 36% saw no change in their loan size
- 22% reduced their total loan size
Nick Chadbourne, CEO, LMS, comments:
“Declining mortgage rates drive competitive remortgaging amidst rising house prices.
“As swap rates continue to stabilise, we have seen an increase in competition among lenders and more favourable pricing options for remortgaging customers.
“As a result, we saw a 14% uptick in remortgage activity in January and a 70% increase in instructions.
“There has been a noticeable shift towards shorter-term fixed-rate options too, with 45% of remortgagers taking out a two-year fixed-rate product – the most popular choice in January.
“Customers are adapting to the ‘new normal’ for rates and are seeking short-term products so they can reassess their options if rates decrease further in the future.
“While we’ve seen a decline in average mortgage rates, recent data highlights that house prices have risen at their fastest rate since this time last year, with a 2.5% increase.
“This may result in a more favourable loan-to-value (LTV) ratio for many customers, and we anticipate this will lead to a more pronounced uptick in market activity in the coming months.”
Kindly shared by LMS
