LMS’ latest Monthly Remortgage Snapshot, which shows remortgage market activity through October 2021, found an average monthly payment decrease of £219 for those who remortgaged during the month.
In addition, 23% of borrowers increased their loan size in October, while 47% of those who remortgaged took out a five-year fixed rate product.
Meanwhile, 28% of remortgager’s primary aim when remotgaging was to lower monthly payments.
Nick Chadbourne, CEO of LMS, said: “Despite the Bank of England’s decision to maintain the base rate at 0.1%, our research shows that two thirds (67%) of people expect interest rates to rise within the next year. This, paired with the increase in product rates which came as lenders pre-empted a possible rise, could be part of what fuelled the surge in instructions cases in October, as many borrowers shopped around to lock in the best rate available.
“Purchase pipelines remain high, and the ending of the stamp duty holiday failed to dampen demand in the home mover market. This, combined with the high levels of ERC expiries due on December 31st and the continued buzz surrounding interest rates, should contribute to busy few months. Those in the industry should ready themselves for this increased activity.”