Competition between lenders to offer the best rates drove remortgaging activity in June, LMS has suggested.
Total remortgaging volume increased to 35,913 in June, up from 32,600 in May.
LMS argues that the increase in total volume, the number lowering overall mortgage payments and mortgage rate is the result of competition between lenders to offer the lowest rate.
Andy Knee (pictured), chief executive of LMS, said: “The remortgage market had an excellent month in June.
“As the market grows busier, remortgagors should ensure they engage with law firms that are capable, have appropriate integrations with lenders and proven competency of processing.”
A fifth (21%) of remortgagors lowered their overall mortgage payments in June which is the highest number since December 2016.
A majority of remortgagors (84%) lowered their mortgage rate in June which increased by 2% from May, whilst the volume of homeowners remortgaging increased for the second consecutive month.
The average mortgage rate increased slightly to 2.06% in June, however annually the average mortgage rate is drastically lower, down from 2.41% in 2016.
Almost half (47%) of remortgagors stated interest rates would increase in the next twelve months which is the highest number since February.
Over a third (36%) remortgaged onto a long-term deal in June up from 8% who previously held this product type.
James Farrow, senior mortgage manager at Yorkshire Building Society Group, added: “We’ve also seen a significant upsurge in the number of borrowers wanting to renew their mortgage.
“Our remortgage applications have increased by 5% from May and June this year, and there was a 58% year-on-year increase from June 2016 to June 2017.
“We would expect this high level of activity to continue for the rest of the summer as the biggest period of mortgage maturities in five years begins in September.”