Enable’s IFAs in Bishops Stortford have completed plenty of remortgages in recent months so it is no surprise that according to the LMS Monthly Remortgage Snapshot remortgages jumped 17% in April. Even though residential transactions jumped almost 180% in April to 117,860 deals, according to HMRC data, the busiest April on record since 2007.
Remortgaging has been a great tool of the pandemic to help people manage the uncertainty and reduce outgoings. The snapshot suggests that “53% of customers took out a five-year fixed rate product, while average monthly payments fell by £195 for those who took out this type of loan.” However, new instructions given to solicitors or conveyancers to begin a remortgage slumped by 16.1% in the same month, which has been blamed on the pressure the pandemic put on some household finances.
“Despite the drop in instructions, remortgage activity levels remained healthy through April with completions up 17.1% and fewer cancellations across the month.” Says LMS chief executive Nick Chadbourne.
Enables IFAs know that the remortgage industry is continuing to work through the backlog to meet sustained demand. This activity continues to be buoyed by the attractive repayment rates offered by many remortgage lenders as they continue to compete for business.
Perhaps through July with the reintroduction of the stamp duty land tax, residential activity will reduce and remortgages increase? “A decline in purchase activity could lead to a growth in remortgage enquires as borrowers decide to stay put until market conditions steady.” Suggests Chadbourne. “A decrease in purchase activity will reduce pressure on the mortgage market, freeing up industry capacity for remortgage business and contributing to a healthy pipeline in the second half of this year.”
If you are looking for a mortgage or considering a remortgage Enable’s IFAs in Bishops Stortford can help you consider all your options. Think carefully before securing other debts against your home. Your home may be repossessed if you do not keep up repayments on your mortgage