Remortgaging volumes rise on pre-election predictions: LMS

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Remortgaging volumes rose in May, buoyed up by the prospect of economic stability following the predicted large Conservative majority, according to LMS.

LMS says the number of remortgage transactions increased by 8 per cent month-on-month from 29,300 in April to 31,936 in May.

However, the total value of remortgage transactions fell 1 per cent between April and May from £5.1bn to £5bn.

Three in five remortgagors (58 per cent) said they expected no change in the average mortgage rate over the next twelve months – an increase from 53 per cent who said the same in April.

Borrowers were also encouraged by record low mortgage rates, as the average rate fell from 2.1 per cent in March to 2 per cent in April.

LMS chief executive Andy Knee says: “Pollsters and the public had predicted a solid election result of a 100+ seat majority for the Conservative Party and continuity at the heart of government.

“Pre-election confidence was the main driver behind the increase in the number of remortgage transactions.

“Remortgagors were so confident that the outcome of the snap election would provide stability that over half said they expected low rates to remain in place for at least the next year.”