The average monthly payment for those who remortgaged in 2019 decreased by £181.42 according to LMS’ Remortgage Snapshot.
Of those who remortgaged in 2019, almost half (46%) took out a 5-year fixed rate product which was the most popular product across the year.
The volume of remortgages is rose year-on-year by 4.2% to 635,277 whilst the end of year rolling average was up 2.3% from January 2019.
Of those who remortgaged, 44% increased their total loan size whilst 22% reduced it.
The same amount (44%) increased their monthly remortgage payments in 2019, whilst 38% saw their monthly remortgage payments decline.
Nick Chadbourne, chief executive of LMS, said: “2019 brought healthy remortgage volumes thanks to enticingly low interest rates, delivering a steady market over the year.
“After a particularly strong January, we saw a 10% increase in remortgage volumes from February to December.
“It’s also positive to see that 67% of borrowers engaged with a broker during their remortgage, showing the value consumers still place on advice.”
Just over half (52%) of borrowers expect interest rates to rise within the next year, however an increasing number expect no change for the foreseeable future.
A total of 96% of those who remortgaged throughout 2019 did so with a fixed-rate product.
Chadbourne added: “Fixed-rate products were hugely popular across the whole of 2019, with 96% of borrowers choosing this type of deal and 5-year terms leading the way.
“This comes as no surprise given that 2019 was a particularly uncertain period both politically and economically.
“Homeowners have been locking into low rates while they can to secure some certainty for their own personal finances.
“It’s uncertain how the remortgage market will evolve as we move into 2020.
“Product expiries for the year look set to mirror 2019, so we can expect similar volumes throughout 2020, but we may see a flat H1 as the home moving market picks up.
“Product choices might change too, as borrowers could opt for shorter-term fixes as fears of a base rate increase subside.
“The growth in product transfer rates will also be a key factor, so it’ll be interesting to see how newer entrants shape their offerings to compete – ERC-free products, the removal of LTV bandings, and an increase in digital-only products are all possible.
“We’ll be continually reviewing our data for changes in market trends and the overall health of the sector, and the balance between the purchase and remortgage sides of the market.”