Almost half (46%) of those who remortgaged in December 2019 took out a 5-year fixed rate product according to LMS’ latest Monthly Remortgage Snapshot.
In December, 95% of those who remortgaged did so with a fixed rate product, with 5-year fixes continuing to be the most popular products.
The volume of remortgages in December reached 52,938 which is up from the 52,251 recorded the month previously.
The average monthly payment decreased by £182.13 for those who remortgaged in December.
45% of borrowers increased their total loan size, whilst 43% increased their monthly remortgage payments.
The average remortgage loan in London and the South East was recorded at £288,154, compared to a country-wide average of £139,819.
This represented a difference of 51.5%.
The longest previous mortgage length was found in the North West at 55.83 months, whilst the shortest was in East Anglia at 48.94 months.
Nick Chadbourne (pictured), chief executive at 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.”
In regards to the future, over half (52%) of borrowers expect interest rates to rise within the next year.
“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.”