Remortgage instructions remaining steady in June

The number of remortgage instructions remained steady in the third week of June and was up 5% compared with the final week in May, new data released by Legal Marketing Services (LMS) has revealed.

The conveyancing solutions provider said the four-week rolling average fell just 1.3% and indicated “consistency” in this area of the market, as well as that the figures are hinting at a return to pre-COVID-19 levels of market activity.
LMS also reported that remortgage completion volumes followed a recent monthly trend with reduced numbers in the third week of June, down 9% from the second week.

The figures indicated that month-on-month performance had significantly improved last week for completions, with the third week of June recording more than six times as many completions as the equivalent week in May.
LMS CEO, Nick Chadbourne, commented: “It is promising to see that the remortgage market is starting to steady, shown by our data. Instruction volumes continue to be the highest-performing measure, as borrower appetite improves week by week and product choice increases.

“The easing of lockdown restrictions will hopefully continue to reduce consumer concerns around social interaction and support increased activity in the remortgage market and the economy as a whole.
“Completion activity is in line with seasonal expectations, with a foreseen fall in volumes in line with fewer ERCs. June is historically a quieter month for remortgages, in the current climate volumes have been further impacted.”

LMS also revealed that its four-week rolling average cancellation volume fell by 0.43% in the third week of June, as the number of cancelled transactions dropped from the second week of the month. Cancellations are down 40% compared with the third week of May.

The sustained high instruction volumes, accompanied by a drop in cancellations, mean that pipeline cases for remortgage are currently on track to be 7.4% higher than May at the end of the month, LMS added.

The conveyancing solutions provider said this will generate the largest number of carried forward cases in 2020, but that overall case volumes are still on track to be around 12.2% lower than the same time last year.

“There is reason for cautious optimism when looking at the coming months with a healthy pipeline and falling cancellation rate,” Chadbourne continued.
“Seasonal trends are likely to be impacted over the next few months and this summer will likely be different to any which we have seen in the last few years.

“Lots of homeowners will be seeking cost-saving opportunities, and different individual circumstances could therefore impact decisions on remortgaging. The wider economy remains a threat to all parts of the remortgage chain, and this next period may continue to throw up unexpected developments and trends.”

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