In July, the number of completed remortgages surged by 20% compared to June, with nearly half of borrowers opting for a five-year fixed rate, according to the latest LMS Monthly Remortgage Snapshot.
The report showed that the five-year fixed rate emerged as the top choice among those refinancing last month. A two-year fixed rate followed closely as the second most popular option, with 44% of borrowers choosing it. Meanwhile, only 7% opted for a three-year fix, 2% selected a 10-year fix, and another 2% chose a tracker mortgage.
Nick Chadbourne, CEO of LMS, noted:
The overall cancellation rate for remortgages saw a 26% increase from the previous month, while the case pipeline experienced a 3% decline.
In July, 45% of remortgagors increased their loan amount, with an average increase of £20,243. This coincided with 26% of borrowers citing the release of equity from their homes as their primary reason for refinancing.
Around 19% of borrowers reduced their loan size by an average of £15,561.
For the 68% of remortgagors who faced higher monthly payments post-remortgage, the average increase in costs was £367.03. On the other hand, 11% saw no change in their payments, while 21% experienced an average reduction of £304.20.
Chadbourne added:
