Completions climb across remortgage market in January

Completion volumes across the remortgage market grew by 6.3% in January, according to new data published by LMS.

The latest LMS Monthly Remortgage Snapshot revealed that instructions volumes also continued to rise in the first month of the year, and showed a 19.4% increase.

The data showed the cancellation rate for the remortgage market increased slightly by 0.6% to 7.72%, meaning the remortgage pipeline shrunk by 7.8% during January, as completions and cancellations increased.


LMS also revealed that 48% of borrowers increased their loan size in January, while 54% of those who remortgaged took out a five-year fixed rate product. The average monthly remortgage payment fell by £212.

The statistics also revealed that 29% of those who remortgaged in January chose to release equity in their property – the most popular primary aim for borrowers across the market.

“The steadying market is already having a positive impact on remortgage activity as industry capacity returns to normal levels and stakeholders have the necessary time to process remortgage cases at healthy rates,” commented LMS CEO, Nick Chadbourne.
 
“We can expect an incredibly busy next few months in both the purchase and remortgage markets which may run into early summer given the current turnaround times.

“COVID-19 has forced homeowners to re-evaluate their priorities in terms of space, location and accessibility, and these factors will continue to buoy the purchase market for months to come, and likely impact remortgage decisions too.

“However, the easing of social distancing measures will allow more staff to return to offices and give the industry the necessary resources and tools to process.”

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