Remortgage instructions jumped 31% in January as this year promises to see the highest number of product expiries since the pandemic, according to LMS.
Around 45% of those who remortgaged took out a five-year fix, the most popular product last month, reports the conveyancer’s latest monthly Remortgage Snapshot.
The average remortgage loan amount in London was £348,258, while the average for the rest of the UK came in at £168,603, making remortgage loan amounts 107% higher in the capital than in the rest of the country.
The survey found that 59% of borrowers increased their monthly remortgage repayments, by an average of £288.18.
While 29% saw their monthly remortgage payments fall, by an average of £354.13. The rest saw no change.
However, there were 1% fewer remortgages completed in January, while the pipeline was stable compared to the previous month.
UK Finance says remortgaging activity was relatively subdued in 2024, in part, “due to slightly lower numbers of customers with fixed-rate mortgages reaching the end of their deal periods and looking to refinance”.
But around one million deals are forecast to remortgage this year, with the banking body predicting this activity will grow by 30% to £76bn. It expects product transfers to lift by 13% to hit £254bn.
LMS chief executive Nick Chadbourne says: “We know that 2025 is set to experience the highest number of product expiries since the pandemic.
“And it’s the pandemic – and [former Prime Minister] Liz Truss — we have to thank for such a bumper year.
“Think back to 2020 when stamp duty changes had everyone moving to the country; these people took out five-year deals.
“Then later, in 2023, we experienced a jump in rates due to Truss, which made two-year fixed rates the way to go.
“Now, in 2025, we will see both the five-year and two-year deals expire, resulting in a double bumper year.”
