The LMS Quarterly Healthcheck Index shows the health of the remortgage market through Q3 2021

The latest publication of the LMS Quarterly Healthcheck Index shows the health of the remortgage market for the third quarter (Q3) of 2021.

Key statistics from report:

• The Remortgage Approvals indicator fell by 7.0 points to stand at 63.2
• The Borrowing Costs indicator dipped by 2.0 points in Q3 to stand at 69.1
• The Homeowner Equity indicator rose by 8.9 points to stand at 86.7. This was not only a record high, but the steepest increase in the indicator since Q3 2020
• The Borrower Sentiment indicator fell for the first time in a year, albeit by a modest 1.2 points

Nick Chadbourne, CEO at LMS, comments:

“Despite small drops in the Borrowing Costs and Borrower Sentiment scores, all indicators remained positive in Q3, signalling the continued health of the remortgage market. The marginal fall in the Index’s overall score is not cause for alarm, but a sign that the market is gradually stabilising following a year of heightened activity.

“The Homeowner Equity indicator has continued to rise, which was good news for homeowners as it meant increased equity in their property, putting them in a favourable position when remortgaging. Despite this, consumer confidence fell due to the rising cost of living and scepticism about continued low interest rates on offer.

“Healthy activity levels are set to remain in 2022 as 2-year fixes taken out when the property market reopened begin to expire. This will be paired with a rise in tech capabilities that have emerged because of the pandemic, including our planned delivery of the first fully automated remortgage cases by the end of 2022. This will set the scene for a more efficient remo market, with the ability to process more cases quicker.”

Kindly shared by LMS

Main photo courtesy of Pixabay