LMS: mortgage completions up 108%

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The volume of remortgage completions rose 108% in September, according to the LMS Monthly Remortgage Snapshot.

Instruction volumes have also increased, increasing by 50% over the same period.

The overall cancellation rate increased from 0.43% to 5% and pipeline cases rose 7% last month.

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The average decrease in monthly payments for those who remortgage in September was £ 235.

In total, 45% of borrowers increased their loan amount and 50% of those who remortgage purchased a 5-year fixed rate product, which was the most popular product term.

It is estimated that 28% of the primary goal of remortgagers during remortgaging was to free up equity in their property.

The average increase in loans after remortgage was £ 21,584, while the average decrease in loans after remortgage was £ 12,607.

The average mortgage amount in London and the South East was £ 288,939, while the average for the rest of the UK was £ 148,978, placing mortgage amounts 48% more bred in London and the South East than in the rest of the UK.

The longest previous mortgage term was found in the North East at 75.88 months (6.32 years) and the shortest was in East Anglia at 59.92 months (4.99 years), putting the longest previous mortgage term 26.64% longer than the shortest.

Nick Chadbourne, Managing Director of LMS, said: “Mortgage instructions rose 50% in September as rumors of an interest rate hike loom, which could impact the cost. mortgage loans.

“Savvy borrowers nearing the end of their current term, and their brokers, will have anticipated it and have started shopping around for a longer fixed rate deal to withstand any increase in their monthly payments.

“The number of mortgage loan completions climbed to 108% as September marked one of the highest number of ERC expirations of the 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 alleviating any capacity mismatches in the industry, ensuring that instructions are balanced across companies to maintain service levels. . “


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