Remortgage volumes continue to remain near a 12-month high, LMS’s Monthly Remortgage Snapshot has found.
Last month saw volumes reach a peak of 54,624, while June only saw a small drop to 53,516.
Nick Chadbourne, chief executive, LMS, said: “This is a particularly strong sign the market is in good health, considering borrowers tend to turn their focus towards holidays and trips away with family during the summer period.
“It’s great to see that brokers are a large part behind this drive, with 67% of borrowers choosing to remortgage because it has been recommended by their broker.”
Outside London and the South East, the highest average remortgage loan amount is in East Anglia, at £200,891. Outside London and the South East, the shortest mortgage length is in Wales, at 54.55 months.
Similar to last month, 67% of borrowers picked a remortgage product because it had been recommended by a broker, a huge rise from the 39% seen in November.
The majority (95%) of those who remortgaged in May did so with a fixed rate product, demonstrating their continued popularity over the remortgage market.
The most popular option remained 5-year fixes, making up 46% of purchases in June, an increase of April’s figure of 43%. This was followed by 2-year fixed rate products which are still the second most popular option, making up 37% of purchases in June, up from 34% in April.
This preference is unsurprising given consumer expectations regarding interest rate rises with 59% of borrowers expecting bank rates to increase in the next year, down from 65% in the previous month.
Chadbourne added: “With wider economic uncertainty still lingering, 5-year fixes continue to grow in popularity.
“As we move into the summer months, both new enquiries and completions are likely to continue growing. This is particularly the case in the South East, which saw the highest number of completions this month.”