Remortgage activity will continue to rise over the next few months, chief executive of LMS Nick Chadbourne has predicted.
LMS’ Remortgage Snapshot found the volume of remortgages had risen from 52,869 in July to 53,141 in August.
Chadbourne (pictured) said: “With a significant peak in early redemption charge expiries on the horizon for October, we’re expecting a steady ramp up in remortgage activity over the next few months.
“Volumes are already up month on month and this trend should continue in Q4 as remortgaging continues to outperform other areas of the market.
“Product purchasing levels remain consistent, but we do expect 10-year fixes to become increasingly popular in line with the current industry activity we are seeing.
“Borrowers are looking for certainty over their personal finances, and longer-term mortgage deals can provide this.
“There is a trade-off, however – in some instances borrowers can expect to pay around 10% more per month for a 10-year fixed product compared to a 5-year product.”
According to the snapshot nearly half (48%) of those who remortgaged took out a 5-year fixed rate product, the most popular product in August.
Some 44% of borrowers increased their total remortgage loan size, 35% saw no change and 21% reduced it.
Outside of London and the South East, the highest average remortgage loan amount for August was in East Anglia, at £190,676.