"It will be the busiest in terms of product expiries since the 2008 credit crunch with well over half a million people expected to remortgage."
Remortgage instructions increased by 11% in May following a seasonal dip the month before, according to the latest figures from conveyancer, LMS.
1% less remortgages completed in May and pipeline cases decreased by 2% month-on-month. However, LMS predicts that the pipeline will jump in the second half of the year as half a million people are set to remortgage.
43% of borrowers increased their loan size in May and 50% of those who remortgaged took out a five-year fixed rate product.
29% said their main aim when remortgaging was to lower their monthly payments, the most popular response.
Nick Chadbourne, CEO at LMS, commented: “As predicted, instructions increased again in May following a seasonal dip the month before. Until now, we have seen a lot of people stay on variable rates in the hope that, if they stick it out, rates will fall. However, the base rate increased to 4.5% early on so it’s not a huge surprise that people looking to remortgage when their product expires are aiming to come off SVRs for more stability.
"As we head into the second half of the year, we expect a big jump in instructions and the pipeline to swell. It will be the busiest in terms of product expiries since the 2008 credit crunch with well over half a million people expected to remortgage. Anyone doing so may well choose a two year fix in the expectation of a lower rate next time. If the market predictions are correct, this would be wise as rates will likely come down during 2024.”
