The second half of this year is being forecast to bring about a glut in the number of people looking to get remortgage deals, with half a million borrowers coming to the end of fixed rate loans.
Last month brought a rise of 11% in the number of remortgage instructions, but it also saw a 1% drop in the number of remortgages that were seen through to completion. Furthermore, May brought a drop of 2% in the number of remortgage pipeline cases, in comparison with April, but that is being predicted to change.
LMS is suggesting that the final two quarters of 2023 will see a lot more remortgaging activity due to the number of people who reach the end of fixed rate deals during that period. In the current market, that could mean they are faced with sharp rate rises and many will look to remortgage to avoid that.
Of those who did so last month, 43% opted for a larger mortgage loan and 50% chose to switch to a fixed rate, five-year mortgage. 29% of them told LMS that reducing the amount that they have to pay each month was the primary reason why they had wanted to remortgage.
LMS CEO Nick Chadbourne told Financial Reporter:
“It will be the busiest in terms of product expiries since the 2008 credit crunch with well over half a million people expected to remortgage.”
This is something that advisors who have the CeMAP qualification will view as an opportunity to win more business for themselves.