Remortgage instruction volumes dropped by 23% between March and April, according to new data published by Legal Marketing Services (LMS).

The conveyancing solutions provider suggested it was the result of a sharp drop at the start of the month.

LMS then recorded a couple of weeks where volumes plateaued at subdued levels, but indicated the market had since seen growth in instruction volumes for two weeks running, with an increase of 11.8% between the week between 20 and 27 April.

The data also showed pipeline numbers at the end of April had decreased by 2.5% from the end of March. LMS suggested instructions had exceeded cancellations and completions at the beginning of April, but this trend reversed through the month, as cancellations slowly increased, completions remained strong, while instructions were below seasonal averages.

LMS CEO, Nick Chadbourne, commented: “The remortgage market had a flying start to May, with a sizeable increase in completions across the first two working days of the month. Performance far exceeded both March and April, which clearly shows the market is working well.

“There’s definitely still work to be done on the processing of more complex cases around witnessing documents and validating ID. This is something we need the whole industry to collaborate on if we are to find solutions that ensure all customers are serviced, but overall there are hugely encouraging indications that the industry is coping incredibly well.”

LMS reported that remortgage completions had remained flat through to the end of April, having fallen just 1% from March volumes.

The data revealed that cancellation levels slowed in the second half of April, dropping by 18.7% from the week commencing 20 April to 27 April. However, April still ended with a cancellation rate of 7.11%, which was 1.72% higher than March, the data also showed. This led to a 31% increase in the raw number of cancelled transactions from March to April.

“Net numbers are set to be comparable with 2019, and it’s pleasing to see the continuation of normal seasonal trends,” Chadbourne added.

“This is such a positive sign after the initial shock of lockdown, and small variations can be expected in the remortgage market, so slight falls in some areas aren’t cause for alarm. Cancellation rates need to be monitored but at this stage are not materially impacting the overall market.

“Completion numbers show that the market remains in good shape, with FAR conveyancing firms continuing business as usual and the hard work across the industry paying off. If short-term cancellations and a potential medium-term economic shock can be managed, we’re optimistic that the market will remain strong as we move towards the summer.”

Share Story: