LMS release their Monthly Remortgage Snapshot for June 2022

LMS have published their latest Monthly Remortgage Snapshot, which shows the remortgage market activity through June 2022.

Key statistics:

• £236 average monthly payment increase for those who remortgaged in June
• 52% of borrowers increased their loan size in June
• 67% of those who remortgaged took out a 5-year fixed rate product, the most popular product in June
• 30% said their main aim when remortgaging was to lower their monthly payments, the most popular response

LMS says:

“There will be an uptick in remortgage activity as more consumers turn to remortgaging to offset their cost of living struggles.

“While the figures show that instructions and completions have dropped, there is a strong pipeline of activity as June saw the biggest monthly increase in pipeline cases since the start of 2022. With the next ERC date coming up in July, we expect instructions will pick up again.

Unlike in previous months when consumers were primarily remortgaging in order to lower their monthly payments, nearly a third (30%) of those who remortgaged in June did so as a way of borrowing more money. It could be that more consumers are looking to secure longer term fixed rate products to improve financial security and manage the cost of living struggles.

As this crisis intensifies further and fears of a recession mount, this trend is likely to continue and the industry will need to cope with increased demand. Using tech to automate simple cases or speed up post-offer queries can be a good place to start.”

Kindly shared by LMS