Remortgaging led to a significant change in monthly payments, with 68% of borrowers experiencing an increase. The average monthly payment for those who remortgaged rose by £367.03, while 21% of borrowers managed to reduce their monthly payments, averaging a decrease of £304.20.
The average remortgage loan amount stood at £208,588 across the UK, with London leading the pack at £368,047, more than double the national average. The longest previous mortgage lengths were found in Wales, averaging 72.69 months, while the shortest was in the South East at 65.02 months.
Market outlook
LMS anticipates further activity in the coming months, driven by expectations of future rate changes and the appeal of fixed-rate products. A substantial 44% of remortgagers opted for a five-year fixed-rate product in July, indicating a desire for payment stability amid economic uncertainties. Additionally, 74% of those choosing fixed-rate products cited the need for predictable monthly payments as their primary motivation.
Reflecting on these trends, LMS CEO Nick Chadbourne (pictured) commented, “I feel we are on the cusp of some meaningful activity. We expect a 15 to 20 per cent increase in product changes next year, and with the automation and improvements in remortgage conveyancing, we may see a move away from product transfers and a shift to full remortgage switching.”
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