Number of remortgages falls in June: LMS

The number of remortgages completed fell in June, breaking the trend which saw this figure steadily increase since mid-2017.

Research conducted by LMS shows that the number of remortgages between May and June fell from 53,624 to 53,516.

Despite this, the average loan amount rose from £168,259 to £174,685 over the same time frame.

The data highlights that the most popular remortgage product in June was five-year fixed rate offerings, with 46 per cent of all remortgages falling under this category.

According to LMS, 46 per cent of homeowners increased their total loan size when they remortgaged.

Meanwhile, 14 per cent saw no change in their monthly repayments and 40 per cent reduced their monthly repayments.

Furthermore, the average loan was increased by £21,686, while those who reduced their loan did so by an average of £12,027.

LMS chief executive Nick Chadbourne says: “Remortgage volumes continue to remain near a 12-month high.This is a particularly strong sign the market is in good health, considering borrowers tend to turn their focus towards holidays and trips away with family during the summer period.

“It is great to see that brokers are a large part behind this drive, with 67 per cent of borrowers choosing to remortgage because it has been recommended by their broker.

“As we move into the summer months, both new enquiries and completions are likely to continue growing. This is particularly the case in the South East, which saw the highest number of completions this month.”

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