LMS has today published its latest weekly update, tracking remortgage market performance through the Covid-19 crisis.
The update includes LMS’ proprietary data on remortgage instructions, completions, cancellations and pipeline activity.
In this update, the ‘second’, ‘third’, and ‘fourth’ weeks of May refer to the weeks commencing 4th May (04.05 – 07.05), 11th May (11.05 – 15.05), and 18th May (18.05-22.05) respectively. No data was collected for the bank holiday on 8th May.
Instruction volumes grew by 7.2% between the third and fourth weeks of May, delivering the highest activity levels since the week commencing 9th March – pre lock down – and continuing the pattern of growth already seen in May. After 15 working days of the month, instructions are 11.1% higher than the for same period in April 2020.
Completions fell slightly between the third and fourth weeks of May, in line with normal monthly trends. Completion volumes for the 15 working days of May so far are 18% higher than April, and 21% higher than March.
Continued strong instruction volumes and consistent completion numbers, combined with a drop in cancellations from the third to the fourth week of May, mean that the pipeline is showing an improving trend with one working week of the month to go.
Total pipeline volumes are currently on track to be 16.3% lower than May 2019.
Cancellations bucked the recent trend from the second and third weeks of May, recording a fall of 32.2% from the third to the fourth week, reflecting a returning confidence in the market as lock down measures ease. The overall cancellation rate for the month has risen to 7.28%, however, and we will be in a position to assess this for the whole of May in the next update.
Nick Chadbourne (pictured), CEO of LMS, said: “It’s promising to see that the instructions spike in the third week of May continued into the fourth week, as the housing market builds momentum. A wider range of available products and loosening restrictions are giving borrowers more freedom to choose the right option for their individual circumstances.
“Together with a consistent volume of completions and falling cancellations, we’re seeing a slightly better picture of the future pipeline than last week, and hope to see this continue as confidence, demand and choice keep coming back to the market.
“Borrowers are likely to be looking for a speedy remortgage, and Fee Assisted Remortgaging (FAR) offers the best option to secure efficiently a good deal in good time. It’s also the most secure, especially at a time when fraud risks across the whole economy are higher than normal. Managing increasing demand while retaining high standards of service will mean cross-industry collaboration is as important as ever, and we’re committed to leading these efforts as a firm.”
