Remortgage instruction numbers dip in final week of June

The number of remortgage instructions dipped slightly in the final week of June and was down on the previous week by 8.2%, new data from Legal Marketing Services (LMS) has revealed.

The conveyancing solutions provider suggested the remortgage market’s recent performance still “remains strong” with the four-week rolling average falling just 0.8%.
The data also indicated that numbers for remortgage completions have remained steady for a third week in succession, with volumes 0.5% up for the final week of June, and the four-week rolling average decreasing by just 2%. LMS said it expects both volumes and the four-week average to increase next week in line with the “usual” spike at the start of a month.
Month-on-month performance signals a small drop off in completion volumes, with totals 10.1% down from the final week in May. This is however what we expect to see in June, which is typically slower than the rest of the year for market activity.
LMS CEO, Nick Chadbourne, commented: “As June comes to a close, we continue to see a landscape defined by stable instruction and completion volumes, paired with fluctuating cancellation numbers.
“Despite the slight reduction of instruction cases we have seen week-on-week, the rise month on month is a considerably positive statistic. June is typically a quieter month for the market and the increasing volumes we are seeing are an indication that we can expect an increasingly healthy market in Q3.”

LMS also suggested that high instruction volumes paired with steadying completion and cancellation levels for remortgages have again led to positive pipeline figures – with June finishing at an increased volume of 10.9% compared to opening volumes.
Week-on-week, the data revealed that cancellation volumes have increased by 28.7% and LMS said that this has meant the four-week rolling average cancellation volume has risen by 12.3%.
“Cancellations remain the metric with the highest variance, likely due to these volumes being easily affected by availability of products on the market and borrowers’ changing circumstances,” Chadbourne added.
“We expect that the beginning of July will follow similar trends to previous months, with a spike of completions and cancellations as firms clear out older pipeline cases. We are optimistic that the further easing of lockdown regulations will begin to be reflected in Q3 data, by revealing a more confident and stable remortgage market. July is historically stronger for activity than June, so we hope to see this trend repeated this year.”

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