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According to the latest LMS snapshot, there were 31% fewer remortgages completed in February.
However, the property transfer firm found that the number of remortgage instructions continued to rise last month, up 9%.
The average monthly payment of borrowers who remortgaged in February increased by £257.
The picture shows that 70% of borrowers have increased their loan size in the past month, bringing the average UK remortgage to £193,733.
The average remortgage in London and the South East was £296,725 while the average for the rest of the UK was £148,546, bringing remortgages in London and the South East by nearly 50% higher than in the rest of the UK.
The longest prior mortgage was found in Wales at 80.25 months (6.69 years) and the shortest in London at 66.60 months (5.55 years), making the longest prior mortgage 17% larger than the shortest.
The most popular product on the market was a five-year fixed-rate loan, which was used by 54% of clients, with 30% saying that the main purpose of remortgaging is “to obtain long-term collateral”.
LMS chief executive Nick Chadbourne says: “The instructions continued to rise in February as expected as people looked to lock in rates before they rise again – this was to be expected as we saw swap rates bottom out and most borrowers continued to decline. after 5-year fixed rates in pursuit of long-term security.”
“Despite this, the funnel has narrowed as a result of a simultaneous increase in cancellations, which was predictable as people who received rates in December started canceling and reapplying for more attractive rates.”
“In March, we are likely to see an increase in the number of orders due to the expected surge in ERC at the end of the quarter. This will be relaxed a bit as affordability remains an issue, and since the spring budget is not helping the housing market in any way, this is unlikely to go away any time soon.”
“We needed action to help people move up the corporate ladder, with the government taking steps to increase the housing stock and therefore increase affordability, and to make the long-term rental market more stable by easing penalties for landlords, but we we don’t do it. something from this. I do not see”.
“Hopefully there will be more information in the coming months, but until then we are probably seeing a general decline in activity as people actually wait and see before making any decisions.”
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