Instruction volumes for remortgages continued to increase through June, according to the latest data gathered by Legal Marketing Services (LMS), rising 8.9% between the first and second week of the month.

The conveyancing solutions provider revealed that volumes are currently 16.3% higher than at the end of May, and that June’s weekly average number of instructions is currently the second highest in 2020. LMS said the only month with a higher weekly average is February, which stands at just 0.7% higher.

The data also showed there has been a significant drop in completion volumes in the second week of June, falling 53.5% from the previous week. LMS described this as “fairly typical” for the second week of a month due to a surge in completions at the start of each month. Despite this, when comparing the second week of May with the second week of June, the figures still showed a significant reduction in completion volumes (42.3%).

LMS CEO, Nick Chadbourne, commented: “Market performance continues to follow the trend we have seen over recent weeks, showing a combination of both positive and declining metrics. Instructions continue to rise as lenders promote competitively price products and offer attractive rates to customers.

“There are expected to be 10-15% fewer ERC expiries at the end of Q2 compared to the end of Q1. This will negatively impact the pipeline and completion volumes as fewer customers remortgage.”

The latest data also showed that steadily increasing instructions, paired with the reduced volume of completions, has driven a 2.4% rise in pipeline cases. LMS suggested that despite the modest growth it had seen in the pipeline, overall volumes are currently down year on year and volumes through July and August are likely to be impacted.

Furthermore, here was a 22.5% rise in remortgage cancellation volumes between the first and the second weeks of June. Comparing cancellation volumes from the second week in June with the second week of May, LMS said the June volumes are higher by 20.3%. 

“The real impact on the pipeline will be felt from the increasing number of cancellations, and the lack of high LTV products exclude some customers out the market,” Chadbourne added.

“The trend around rising cancellation volumes continues to be a concern. The increase is being driven by changes to consumer personal circumstances, new products becoming available as rates are reducing and older cases being cleared out of the pipeline. All of these combinations could lead to a greater quantum of variance between Q1 and Q2 ends.”

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