LMS publish their Monthly Remortgage Snapshot for April 2021
LMS have published their Monthly Remortgage Snapshot for April 2021, which shows activity in the remortgage market through to the end of the month.
Key performance metrics:
Instructions decreased by 16.1% in April
17.1% more remortgages completed in April than in March
The overall cancellation rate decreased by 0.3%
Activity remained healthy in April, with pipeline cases dropping by just 0.7%
Average monthly payment decrease for those who remortgaged in April
of borrowers increased their loan size in April
of those who remortgaged took out a 5-year fixed rate product, the most popular product in April
The most popular primary aim when remortgaging to release equity in their property Remortgage loan sizes
A spokesperson for LMS said:
“Strong completions and fewer cancellations contribute to a healthy April pipeline.
“Despite the drop in instructions, remortgage activity levels remained healthy through April with completions up 17.1% and fewer cancellations across the month. The industry continues to work through the backlog to meet sustained demand, buoyed by the attractive repayment rates offered by lenders as they continue to compete for business.
“On the other side of the market, HMRC figures released in May reveal a monthly drop of 35% in residential transactions, yet purchase activity remains at the highest level we’ve seen in April since 2007. This heighted demand is expected to persist, fuelled by a combination of the SDLT extension, continued competitive mortgage rates and the Government’s mortgage guarantee scheme which launched in April.
“Looking ahead the shift between purchase and remo is likely to change. As borrowers rush to complete purchases ahead of the reintroduction of the SDLT in July, there is an expectation that activity will slow following the deadline, perhaps sharply. A decline in purchase activity could lead to a growth in remortgage enquires as borrowers decide to stay put until market conditions steady. A decrease in purchase activity will reduce pressure on the mortgage market, freeing up industry capacity for remortgage business and contributing to a healthy pipeline in H2 this year.”
Kindly shared by LMS
Main photo courtesy of Pixabay