Remortgage loan amounts reached all-time high - LMS Remortgage Report
01 October 2018
Remortgage loan amounts reached an all-time high of £171,421 in July, according to conveyancing service provider, LMS. Transaction also levels hit their highest point since September 2009 on a 12-month rolling average – although they remain some way off their pre-crash highs.
Nick Chadbourne, chief executive of LMS, said: “Remortgaging volumes have been on an upward trend since the beginning of 2015 and the current 12-month rolling average shows an eight-year high. Growth has been driven by a combination of factors. People tracking rates to secure a fixed-rate deal ahead of a potential rate change over the summer, and a flurry of borrowers, correlating with a previous spike in the market. Back in the summer of 2016 interest rates hit a record low and people fixed on the rates available at that time on two-year deals. These borrowers are now reaching the end of their current arrangement and are returning to the market.”
LMS’s data also shows the number of borrowers consulting a broker when remortgaging has risen from 70% in July 2017 – to 83% in July 2018.
Nick Chadbourne said: “In an environment where so many products are available, more people are looking to mortgage brokers for advice. Our data shows that the number of remortgagors consulting a broker has risen to 83% – the highest we’ve come across. In the current landscape, it’s sensible to consult a broker to get the best deals, considering not only headline rates but the additional value of extras such as free legals. Brokers can help people make sensible decisions and select the right product to suit their individual requirements.”
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