The value of remortgaging levelled at £5.2bn in March the latest report from LMS suggests.
Total remortgage lending increased by 1% from £5.2bn in February to £5.26bn in March which accounted for a quarter of the total lending market.
LMS’ report highlights that price and long-term financial security was the two core motives for remortgaging in March.
One in five (19%) homeowners lowered repayments by remortgaging in March and 84% lowered their mortgage rates through remortgaging.
Andy Knee, chief executive of LMS said: “A general election and Brexit negotiations could spell disaster and coupled with rising interest rates, the remortgage market looks set to experience some tricky months between now and the end of the year.”
The report also outlines a surge in the number of homeowners fixing for longer in March, as 32% fixed onto five-year mortgages.
Knee added: “On the bright side, the number of people remortgaging rose year-on-year in March – the result of improved affordability.
“For those who managed to remortgage in March, this will be of paramount importance in the months to come.”
These figures are revealed as the average mortgage rate increased for the first time since September 2016 to 2.13% in February.