LMS publishes its Monthly Remortgage Snapshot for October
LMS publish their latest Monthly Remortgage Snapshot for October, providing a comprehensive overview of remortgage activity over the month.
Key performance metrics:
|
0.27% |
35% |
4.69% |
2% |
|
Instructions decreased by 0.27% in October |
35% more remortgages completed in October |
The overall cancellation rate decreased by 20% |
Pipeline cases increased by 2% month on month |
Fast facts:
|
£247 |
44% |
65% |
33% |
|
average monthly payment increase for those who remortgaged in October |
of borrowers increased their loan size in October |
of those who remortgaged took out a 5-year fixed-rate product, the most popular product in October |
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 |
|
£20,791 |
average loan increase post-remortgage |
|
£14,583 |
average loan decrease post-remortgage |
Monthly loan repayments:
|
67% |
increased their monthly remortgage repayments |
|
11% |
saw no change in their monthly remortgage repayments |
|
21% |
reduced their monthly remortgage payments |
|
£247 |
average monthly repayment increase |
|
£223 |
average monthly repayment decrease |
Regional trends:
The average remortgage loan amount in London and the South East was £332,937 while the average for the rest of the UK stood at £156,169, putting remortgage loan amounts 113% higher in London and the South East than the rest of the UK.
The longest previous mortgage length was found in Wales at 78.67 months (6.56 years) and the shortest was in London at 57.91 months (4.83 years), putting the longest previous mortgage term 35% longer than the shortest.
Nick Chadbourne, CEO of LMS, comments:
“October saw a big increase in completions as people looked to lock in the products they secured before any potential rate change causes them to be withdrawn.
“For those who had yet to start the remortgage process, the marginal increase in instructions makes it clear that they are waiting to see what November brings before instructing, especially as it will be a big month with both the interest rate decision and the Autumn Budget.
“Although product rates are slowly coming down, they are still out of kilter with SVRs. As such, some borrowers might wait and see if rates will fall in January before remortgaging because there seems to be little danger of dropping onto a less favourable rate. However, this approach comes with an element of risk in that there is no guarantee that swap rates and therefore product rates won’t increase again.
“The most proactive of borrowers will look to instruct sooner rather than later to mitigate this, and so we expect instructions to rise ahead of the next big ERC expiry date at the end of the year.”
Kindly shared by LMS
Main photo courtesy of Pixabay
