February's mortgage completions up by 23%
The high level of remortgage activity is predicted to continue throughout 2022, conveyancing services provider LMS said as it released its latest Monthly Remortgage Snapshot.
Its February report saw mortgage completions increase by 23%, while instructions increased by 21%.
“February has seen an uptick in remortgaging activity with almost 25% more completions compared to January. Activity will almost certainly remain very high throughout March with the next big ERC date, April 01, fast approaching and the fact that lenders are pulling products from the market due to the heightened level of uncertainty and making borrowers make increasingly frenzied decisions,” Nick Chadbourne, chief executive at LMS, said.
The report also found that there was a £208 average monthly payment increase for those who remortgaged in February.
Of those who remortgaged, 62% took out a five-year fixed rate product, the most popular during the month.
LMS also said that 42% of borrowers increased their loan size in February.
“Processing requests quickly and efficiently will be key in keeping borrowers happy while dealing with the high level of remortgage activity, which is predicted to remain throughout 2022,” Chadbourne said.
LMS’s UK remortgage lending estimates are forecasts based on LMS’s up to date internal conveyancing data and remortgage lending figures provided by UK Finance.