"As it stands, the remortgage market is forecasted to be flat in 2020."
Five-year fixes remain the most popular products for remortgagors, with two-year fixed rates falling to 39% and 10-year fixes still failing to make a significant dent in the market with just 3% of borrowers choosing such a deal.
Despite growing expectations of a rate cut, 52% of borrowers expect interest rates to rise within the next year. However, 30% say they think any changes are more than a year away.
Nick Chadbourne, CEO of LMS, said: “Average loan amounts grew in December, as we saw an increase of 3% across the country with borrowers taking advantage of competitive rates to release additional equity.
"The North of England spearheaded loan increases, with growth of 10% in both the North West and Yorkshire. The North East, however, recorded a fall in loan size for the second month in succession, with loan sizes dropping by 8% in December.
“As it stands, the remortgage market is forecasted to be flat in 2020. A base rate reduction, however, paired with greater political certainty, could lead to the ‘Boris Bounce’ being felt within the remortgage market, as borrowers look to leverage the low interest rates through fixed products and releasing equity from their property.”
