Instructions for remortgages increased by 50% in September, according to LMS’s latest remortgage snapshot.
Added to this is 108% more remortgages made in September compared to the previous month, while cancellations increased by 0.43 points to 5%.
LMS data shows that 45% of borrowers increased their loan size in September, with the average loan increase reaching £ 21,584.
Meanwhile, 21% of borrowers have reduced their loan amount, with the average here being £ 12,607.
A very large proportion of borrowers have reduced their monthly remortgage payments, the data adds – 46% – which means the average monthly repayment has fallen by £ 234. And 41% of borrowers saw their monthly bills increase, by £ 254 on average.
And of all the fixed terms, the five-year period is the most popular, with 50% of borrowers opting for this type of remortgage, with two-year fixed rates not far behind at 40%.
LMS Managing Director Nick Chadbourne said: “The number of mortgage completions climbed to 108% as September marked one of the highest numbers of prepayment charge due dates in the world. year.
“As some lenders will be inundated with cases due to the current rate war, panel managers will have an important role to play in mitigating any capacity mismatches in the industry, ensuring that instructions are balanced across companies to maintain service levels. . “