Instructions across the remortgage market fell by 16.1% in April, according to new data published by LMS.

The latest LMS Monthly Remortgage Snapshot revealed that despite this fall, April also saw a 17.1% rise in remortgage completions compared to March.

The data revealed that the overall cancellation rate decreased by 0.3% during the month to sit at at 6.47%, while the remortgage pipeline dropped by just 0.7% in April.

Fifty-three per cent of borrowers increased their loan size in April, while a similar number (53%) of those who remortgaged took out a five-year fixed rate product, which LMS reported was the most popular product in April.

“Despite the drop in instructions, remortgage activity levels remained healthy through April with completions up 17.1% and fewer cancellations across the month,” LMS CEO, Nick Chadbourne, commented. “The industry continues to work through the backlog to meet sustained demand, buoyed by the attractive repayment rates offered by lenders as they continue to compete for business.

“Looking ahead, the shift between purchase and remortgage is likely to change. As borrowers rush to complete purchases ahead of the reintroduction of the Stamp Duty Land Tax in July, there is an expectation that activity will slow following the deadline, perhaps sharply.

“A decline in purchase activity could lead to a growth in remortgage enquires as borrowers decide to stay put until market conditions steady. A decrease in purchase activity will reduce pressure on the mortgage market, freeing up industry capacity for remortgage business and contributing to a healthy pipeline in H2 this year.”

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