LMS: mortgage completions up 6.3% in January
Remortgage completion volumes increased 6.3% in January, according to the LMS monthly remortgage snapshot.
In addition, instruction volumes continued to grow, up 19.4% in January.
The cancellation rate rose 0.6% to 7.72% in the first month of the year, and pipeline numbers fell 7.8%.
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The average decrease in monthly payments for those who remortgage in January was £ 212.
In total, 48% of borrowers increased their loan amount and 54% of those who remortgage purchased a 5-year fixed rate product, which was the most popular product term.
The most popular primary goal in remortgaging, at 29%, was to free up the equity in the property.
The average increase in loans after remortgage was £ 22,231, while the average decrease in loans after remortgage was £ 10,906.
Nick Chadbourne, Managing Director of LMS, said: “The stabilization of the market is already having a positive impact on remortgage activity as industry capacity returns to normal levels and stakeholders have time to process remortgage records at healthy rates.
“We can look forward to some incredibly busy next few months in the buy and remortgage markets, which could end in early summer given current lead times.
“COVID-19 has forced homeowners to re-evaluate their priorities for space, location and accessibility, and these factors will continue to support the buying market for months to come and will likely also have an impact on re-mortgage decisions.
“However, easing social distancing measures will allow more staff to return to offices and give the industry the resources and tools to deal with it.”