LMS publishes its Monthly Remortgage Snapshot for December
LMS publish their latest Monthly Remortgage Snapshot for December, providing comprehensive overview of remortgage activity over the month.
Key performance metrics:
|
49% |
17% |
5.60% |
10% |
|
Instructions decreased by 49% in December |
17% less remortgages completed in December |
The overall cancellation rate increased by 0.59% |
Pipeline cases decreased by 10% month on month |
Fast facts:
|
£250 |
43% |
67% |
35% |
|
average monthly payment increase for those who remortgaged in December |
of borrowers increased their loan size in December |
of those who remortgaged took out a 5-year fixed-rate product, the most popular product in December |
said their main aim when remortgaging was to longer-term security, the most popular response |
Remortgage loan sizes:
|
43% |
increased their total loan size |
|
36% |
saw no change in their total loan size |
|
21% |
reduced their total loan size |
|
£18,339 |
average loan increase post-remortgage |
|
£14,333 |
average loan decrease post-remortgage |
Monthly loan repayments:
|
72% |
increased their monthly remortgage repayments |
|
9% |
saw no change in their monthly remortgage repayments |
|
19% |
reduced their monthly remortgage payments |
|
£240 |
average monthly repayment increase |
|
£238 |
average monthly repayment decrease |
Regional trends:
Regional trends The average remortgage loan amount in London and the South East was £301,303 while the average for the rest of the UK stood at £151,254, putting remortgage loan amounts 99% 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 69.26 months (5.77 years) and the shortest was in East Midlands at 60.52 months (5.04 years), putting the longest previous mortgage term 14% longer than the shortest.
Nick Chadbourne, CEO of LMS, comments:
“While all metrics fell in December, this is somewhat unsurprising.
“The quieter month was both seasonal and down to the fact that the majority of borrowers were holding out to see what the new year would bring.
“Those who did remortgage were looking for longer term security as is evident by over two thirds of them locking in five year fixed rates.
“Moving forwards, we’re likely to see the market stabilise – the economy will likely steady in 2023 following the political volatility that dominated the last year.
“Mortgage rates are expected to reduce at the beginning of the year before settling back into previous dynamics against the base rate movements.
“Borrowers should therefore expect the first half of 2023 to bring the lowest prices for the foreseeable future and aim to lock these in while they still last.”
Kindly shared by LMS
Main photo courtesy of Pixabay
