Instructions for remortgages climbed by 11% across the market in November, according to new data published by LMS.

November also saw a 15% increase in remortgage completions as well as a 12% rise in cases in the pipeline.

The overall cancellation rate for remortgages remained fairly constant, dropping by just 0.1% to sit at 4.90% of cases.

Elsewhere, the LMS data showed that the average loan decrease for borrowers after they remortgaged was £12,964 – as 22% of borrowers who remortgaged decreased their loan size.

The research also showed that 47% of borrowers increased their loan size, with the average loan increase standing at £21,339 in November. The remaining 31% of borrowers saw no change in their loan size.

Commenting on the latest data, LMS CEO, Nick Chadbourne, suggested that remortgage activity in November was “largely fuelled” by an expected Bank of England base rate increase, which triggered banks and building societies to begin pricing an expected rate rise into their repayment rates.

“For borrowers coming to the end of their fixed term, this rise in rates prompted many shop around to secure the best deal possible, rather than opting for a product transfer, as shown by the rise of 11% in instructions month-on-month,” said Chadbourne.

“The high activity levels we witnessed in November are set to continue for the foreseeable future, spurred on by the high volume of ERC expiries in December. This should keep the remortgage market buoyant as we head into the new year with a flood of new instructions."

“Panel managers will play a vital role in ensuring that every case is processed efficiently and securely. Using their trusted network of conveyancers, and sophisticated technology, they can provide additional security to ensure clients experience a smooth and streamlined journey, despite the increased market activity over the coming months.”

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