LMS has published its latest remortgage market activity data, covering March 2023.
It found that the average monthly payment increase for those who remortgaged in March was £310, with 41% of borrowers increasing their loan size last month.
In addition, 53% of those who remortgaged took out a five-year fixed rate product, the most popular product in March.
25% said their main aim when remortgaging was to gain longer term security, the most popular response
Nick Chadbourne, CEO of LMS, said: “Although both completions are down and cancellations are up, this was expected. It is typical to see completions drop in the last month of a quarter as the next ERC spike looms and cancellations rising was simply due to the fact that borrowers who secured offers when rates were high continue to shop around for a more competitive deal.
As the year progresses, we know that 2023 has a raft of product expiries that will culminate in the highest ERC spike for five years at the end of Q4. This will be somewhat offset by an increasing number of people looking for product transfers thanks to lessening affordability, but nevertheless we can expect a big build in instructions and pipelines as the year goes on. April will see the start of this, and we expect instructions to rise after the usual Easter dip.
More generally, while products remain competitive, inflation also remains high so its normal to expect the Bank of England to raise the base rate over the summer. It’s not a given that this will impact mortgage products, but it will drive anyone with trackers or those on SVRs to change products and increase the pipeline further.”