Remortgage instruction volumes grow as market continues recovery

Remortgage instruction volumes grew by 7.2% between the third and fourth weeks of May, delivering the highest activity levels since the UK went into lockdown, new analysis from Legal Marketing Services (LMS) has revealed.

The conveyancing solutions provider revealed volumes had reached their highest since the week commencing 9 March to continue the pattern of growth already recorded in May, and added that after 15 working days of the month, instructions are 11.1% higher than the same period in April.

The LMS data also revealed that remortgage completions had fallen slightly between the third and fourth weeks of May, which was in line with its normal monthly trends. Completion volumes for the 15 working days of May so far are 18% higher than April, and 21% higher than March.

Furthermore, LMS stated that total remortgage pipeline volumes are currently on track to be 16.3% lower than May 2019.
 
while remortgage cancellations bucked the recent trend from the second and third weeks of May to record a fall of 32.2% from the third to the fourth week. The conveyancing solutions provider suggested this reflected a returning confidence in the market as lockdown measures ease.

LMS CEO, Nick Chadbourne, commented: “It’s promising to see that the instructions spike in the third week of May continued into the fourth week, as the housing market builds momentum. A wider range of available products and loosening restrictions are giving borrowers more freedom to choose the right option for their individual circumstances.
 
“Together with a consistent volume of completions and falling cancellations, we’re seeing a slightly better picture of the future pipeline than last week, and hope to see this continue as confidence, demand and choice keep coming back to the market.
 
“Borrowers are likely to be looking for a speedy remortgage, and Fee Assisted Remortgaging (FAR) offers the best option to secure efficiently a good deal in good time. It’s also the most secure, especially at a time when fraud risks across the whole economy are higher than normal.”

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