LMS’ latest Monthly Remortgage Snapshot, which shows remortgage market activity through September 2021, sound that the average monthly payment decrease for those who remortgaged in September was £235.
During the month, 45% of borrowers increased their loan size, while 50% of those who remortgaged took out a five-year fixed rate product.
In addition, 28% of remortgagers’ primary aim when remortgaging was to release equity from their property.
Nick Chadbourne (pictured), LMS’s CEO, said: “Remortgage instructions rose by 50% in September as rumours of an interest rate rise loom large, which may impact the cost of mortgages. Savvy borrowers nearing the end of their current term, and their brokers, will have anticipated this and have begun to shop around to secure a longer fixed-rate deal to weather any increases in their monthly repayments.
“As some lenders will be inundated with cases as a result of the current rate wars, panel managers will have an important role to play in mitigating any mismatch in capacity across the industry, by ensuring that instructions are evenly balanced between firms to maintain service levels.”
