The first week of June saw a 6% rise from the average weekly remortgage instruction volumes recorded during June last year, new data published by Legal Marketing Services (LMS) has revealed.

The conveyancing solutions provider suggested the increase is a “positive sign” of overall market health improving and a return to normal. Month on month, instruction volumes were also 7.3% higher in the first week of June than in the first week of May.

The data showed that completion volumes for remortgages in June have also reduced from those recorded in May in line with our expectations, which LMS said is likely to be linked to seasonal ERC expiries, adding that June is historically a quieter month.

LMS indicated its weekly data has demonstrated a trend in completion volumes spiking in the first week of each month and that June has proven to be the same, but noted that when looking at the bigger picture, completion volumes are down 30.2% compared to volumes in the first week of May.

LMS CEO, Nick Chadbourne, commented: “The first week of June marks another consistent week of healthy instruction volumes. We are seeing a continued return towards stability in this area, with a consistent increase in new cases coming onto the books.

“It is particularly promising to note that when making year on year comparisons between June 2019 and June 2020, we are seeing increased volumes at present.”

The LMS data also showed the recent trend of rising remortgage cancellations continued with volumes increasing in the first week of June, showing higher levels than for the same period in May (up 45.8%), as well as when compared with the average weekly number for June 2019 (up 92%).

June also commenced with the remortgage pipeline volume 4.2% lower than at the beginning of May, and LMS said this was reflective of the rising completion and cancellation rates throughout last month.

“Increasing cancellations volumes are cause for quiet concern and something we will continue to monitor as the month continues,” Chadbourne added. “Rising levels could be caused by offers from Q4 2019 expiring and firms clearing out aged cases at the beginning of the month.

“Moreover, as the COVID-19 crisis continues and borrowers’ circumstances continue to change and new deals enter the market, previously attractive offers may become unappealing. This could be having a knock-on effect as borrowers look to change deals and ensure they are getting the best available product at that time.”

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