Around 32% fewer remortgages were completed in June and instructions fell by around 14%, a report found.
According to LMS’ Monthly Remortgage Snapshot, the overall cancellation rate was pegged at 9%, with pipeline cases falling 4% month-on-month.
More than two-thirds said that their monthly repayments increased, with the average monthly repayment increase coming to £364.09.
Under a quarter said that they reduced their monthly remortgage payments, with the average monthly repayment decrease coming to £305.71.
Only 9% said that they saw no change in their monthly remortgage repayments.
Regarding remortgage loan sizes, around 47% increased their total loan size, with the average loan increase post-remortgage coming to £20,545.
Over a third didn’t change their loan size, while 21% reduced their total loan size. The average loan decrease post-remortgage was estimated at £14,124.
Nick Chadbourne (pictured), chief executive of LMS, said: “As predicted, we have seen a reduction in remortgage activity, and it’s a trend we can expect to continue over the coming months. Whilst the scaremongers out there would have you believe borrowers are sitting [and] waiting to see rates drop, the reality is that we are in a quiet phase for product expiries, and product transfers continue to win the day whilst lender margins are tight.
“The stability of a new government, an expected rate cut towards the end of the summer, and increasing lender competition will start to reverse this activity trend. However, I don’t expect this to happen until the kids are well into the first term of their new school year.”
Anna is currently the deputy editor for Mortgage Solutions and editor for Specialist Lending Solutions. She has worked as a journalist since 2019, having secured her Gold Standard NCTJ diploma from News Associates in a fast-track six-month course.
She started her career as a report at specialist publication The Insurance Insider covering a wide range of areas before joining Mortgage Solutions and Specialist Lending Solutions in 2021.
In her role, she helps put together and structure the news agenda for the day and writes up press releases, reports, interviews, analyses and exclusives across both titles. She also commissions blogs for Specialist Lending Solutions and hosts online masterclasses and in-person events across the business.
She has been shortlisted for three journalism awards, which include BIBA Journalist and Media Awards Scoop of Year Award in 2020, Headline Money Mortgage Journalist of the Year Award (B2B) in 2022 and 2023.
Prior to being a journalist, Anna worked in ecommerce across Snow + Rock, Cycle Surgery and Runners Need websites, and before that worked at specialist financial PR firm Rostrum.
In her spare time, Anna enjoys reading, seeing live music, and cooking for friends and family. When she gets a chance, she also enjoys hiking, skiing and indoor rock climbing.
