LMS publish its Monthly Remortgage Snapshot for September

LMS publish their latest Monthly Remortgage Snapshot for September, providing comprehensive overview of remortgage activity over the month.

Key performance metrics:

6%	3%	5.61%	10%
Instructions decreased by 6% in September	3% fewer remortgages completed in September	The overall cancellation rate decreased by 21%	Pipeline cases increased by 10% month on month

Fast facts:

£236	50%	68%	29%
average monthly payment increase for those who remortgaged in September	of borrowers increased their loan size in September	of those who remortgaged took out a 5-year fixed-rate product, the most popular product in September	said their main aim was to release equity in property (i.e. borrow more money)

Remortgage loan sizes:

50%	increased their total loan size
36%	saw no change in their total loan size
15%	reduced their total loan size
£21,933	average loan increase post-remortgage
£13,718	average loan decrease post-remortgage

Monthly loan repayments:

59%	increased their monthly remortgage repayments
12%	saw no change in their monthly remortgage repayments
29%	reduced their monthly remortgage payments
£236	average monthly repayment increase
£251	average monthly repayment decrease

Regional trends:

The average remortgage loan amount in London and the South-East was £279,689 while the average for the rest of the UK stood at £130,570 putting remortgage loan amounts 72.6% higher in London and the South-East than the rest of the UK.

The longest previous mortgage length was found in London at 85.10 months (7.09 years) and the shortest was in the North-West at 72.71 months (6.06 years), putting the longest previous mortgage term 17 longer than the shortest.

Nick Chadbourne, CEO of LMS, comments:

“There is no doubt that this is a stressful time for borrowers as they experience an upwards pressure on their mortgage payments, but the end of September is traditionally a big time for ERC expiries.

“This typically means a drop in completions and a swell in pipelines as firms get ready to process these cases on the 1st October.

“The market volatility caused by the mini budget also saw instructions drop as lenders immediately withdrew products, so all in all, the statistics show what we would expect.

“With the ERC expiry date and the fact that those lucky enough to secure a rate before the budget will see their cases flow through to completion, we expect completions to pick up in October, but it will also likely be a month of anomalies as the ongoing economic instability and changing policy will cause lenders to enter and leave the market with various products as appropriate.”

Kindly shared by LMS

Main photo courtesy of Pixabay