Instructions for remortgages saw a 50% increase in September, according to new data published by LMS.

The number of remortgage completions also more than doubled having climbed by 108% in September, as the month marked one of the highest numbers of ERC expiries of the year.

LMS data also revealed that the rate of remortgage cancellations climbed marginally by 0.43% to reach 5%, while the number of cases in the pipeline rose by 7%.

Across the remortgage market in September, the average monthly payment for those who remortgaged decreased by £235, figures also showed. Of remortgage customers in September, LMS also found that 45% of borrowers increased their loan size.

LMS CEO, Nick Chadbourne, highlighted that the jump in remortgage instructions comes amid recent rumours of an imminent rise in interest rates.

“Savvy borrowers nearing the end of their current term, and their brokers, will have anticipated this and have begun to shop around to secure a longer fixed-rate deal to weather any increases in their monthly repayments,” Chadbourne commented.

“The number of remortgage completions soared to 108%, as September marked one of the highest numbers of ERC expiries of the year.

“As some lenders will be inundated with cases as a result of the current rate wars, panel managers will have an important role to play in mitigating any mismatch in capacity across the industry, by ensuring that instructions are evenly balanced between firms to maintain service levels.”

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