The UK remortgage market remained steady in June, with new instructions and cancellations holding firm against May’s figures, according to the latest LMS Monthly Remortgage Snapshot.

While new business remained stable, a dip in completions saw pipeline activity rise as borrowers prepared for a spike in product maturities at the start of July.

COMPLETION DEPLETION

LMS reported no change in remortgage instructions or cancellation rates compared with the previous month, suggesting a degree of consistency in borrower sentiment. However, completions fell by 16% in June, prompting an 8% rise in pipeline volumes as deals rolled forward into the new quarter.

Nick Chadbourne, chief executive of LMS, noted the seasonal nature of the slowdown: “June presented a relatively flat picture for new remortgage instructions, indicating stability in borrower activity,” he said.

“Completions, however, saw a decline, resulting in a buildup of pipeline volumes as we headed into July. This slowdown in completions is not unexpected, given the significant spike in product expiries at the start of July, which naturally shifts completion activity into the new month.”

He added that instruction levels remain robust year-on-year: “Instructions are still tracking around 20% higher than the same period last year, highlighting continued underlying strength.”

The average monthly repayment for those remortgaging in June rose by £277.01, with 56% of borrowers seeing an increase in payments. However, a significant portion — 33% — reported lower repayments, and 24% said their primary motivation for remortgaging was to reduce monthly costs.

LOAN SIZES

Loan sizes varied considerably. Nearly half (46%) of borrowers increased their overall loan amount, with an average uplift of £22,244.27. In contrast, 16% reduced their borrowing by an average of £11,648.81, while 38% saw no change in their loan size.

Product choice data suggests continued preference for long-term certainty, with 45% of borrowers selecting five-year fixed rate products — the most popular option for the month.

REGIONAL PICTURE

Regionally, stark differences remain. The average remortgage loan in London stood at £377,376 in June, 115% higher than the average for the rest of the UK, which came in at £175,488. The national average was £208,908. The length of previous mortgage terms also varied, with borrowers in the South West having the longest average term at just over six years, while Yorkshire had the shortest at just under 5.7 years.

With pipeline volumes up and a known wave of product maturities arriving in July, LMS anticipates increased activity in the coming weeks. Chadbourne expects instruction levels to remain “broadly flat” for the rest of the year, but with clear spikes in completions around quarter-ends.