The percentage of remortgagors opting for an adviser to guide them through the process rose from 38 per cent in May to 41 per cent in June – the highest amount since December 2015 – as people looked for stability ahead of and immediately after the EU referendum.
Research from LMS showed a bounce of four percentage points in the number of borrowers remortgaging to take advantage of a lower mortgage rate, rising to three in five of respondents (60 per cent) in June from 56 per cent in May.
Almost two in five (38 per cent) who remortgaged in June did so to reduce their mortgage payments by up to £500 – up six percentage points from 32 per cent in May – while more than a quarter (27 per cent) remortgaged to increase the size their loan.
May this year was the best May on record for remortgage lending since 2008, while April remortgage lending hit a 7 year high of £6.4bn.
The findings are based on 876 respondents to a LMS customer survey in June.
Andy Knee, chief executive of LMS, said while the effects of the UK’s vote to leave the EU are yet to be seen, there is already news across the board that business is maintaining traction, with minimal transactions falling through.
“Low interest rates currently available are very positive for homeowners and speculation of the base rate being cut to 0.25 per cent is increasing the supply of these offers, however, longer-term fixed products are becoming increasingly popular as homeowners look to stability in these turbulent times,” he stated.
“The desire for greater security and assurance is also reflected by the increase in people using a broker to help guide them through the remortgage process.”
The Council of Mortgage Lenders’ latest figures showed remortgage activity totalling £5.2bn in May, down 15 per cent on April, but up 30 per cent compared to a year ago.
This came to 30,900 loans, down 12 per cent month-on-month, but up 25 per cent compared to a year ago.
peter.walker@ft.com
