Instructions carried out in the remortgage market saw an increase of 35% in October, new research published by LMS has revealed.

Figures also showed that 15% more remortgages were completed during the month compared to September, while pipeline cases also saw a rise of 13%.

LMS added that the overall cancellation rate fell by 0.37%, to stand at 4.82%.

The figures mean the average monthly payment decreased by £219 for those who remortgaged in October. Forty-seven per cent of those who remortgaged took out a five-year fixed rate product, which was the most popular product during the month.

LMS CEO, Nick Chadbourne, said that despite the Bank of England’s decision to maintain the base rate at 0.1%, LMS’s findings showed that two thirds (67%) of people are still expecting interest rates to rise within the next year.

“This, paired with the increase in product rates which came as lenders pre-empted a possible rise, could be part of what fuelled the surge in instructions cases in October, as many borrowers shopped around to lock in the best rate available,” Chadbourne said.

“The number of remortgage completions continue to climb for the second consecutive month due, in part, to the high volume of fixed rate mortgages which expired at the end of September. It’s a promising sign to see the industry efficiently progressing the high levels of pipeline activity.

“Purchase pipelines remain high, and the ending of the stamp duty holiday failed to dampen demand in the home mover market. This, combined with the high levels of ERC expiries due on December 31st and the continued buzz surrounding interest rates, should contribute to busy few months. Those in the industry should ready themselves for this increased activity.”

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