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There were 32% fewer remortgages completed in June 2024 compared with the previous month, according to the latest LMS remortgage snapshot.
The conveyancing services firm also found that remortgage instructions were down 14% last month.
The average monthly payment increase for those who remortgaged in June was £364.09, the snapshot shows.
As many as 47% of borrowers increased their loan size during the month. Some 45% of those who remortgaged took out a two-year fixed-rate product – the most popular option in June.
More than a third (37%) said their main aim when remortgaging was to lower their monthly payments – the most popular response.
Meanwhile, 33% of borrowers saw no change in their total remortgage loan size during June, while 47% increased the size and 21% reduced it.
The average loan increase post remortgage was £20,545 and the average decrease was £14,124.
More than two thirds (67%) increased their monthly payments, while 24% reduced them and 9% saw no change. The average monthly payment decrease was £305.71.
On a regional level, The average remortgage loan amount in London was £360,297, while the average for the rest of the UK stood at £173,842 making remortgage loan amounts 107% higher in London than in the rest of the country.
Nick Chadbourne, CEO of LMS, commented: “As predicted, we have seen a reduction in remortgage activity and it’s a trend we can expect to continue over the coming months.
“Whilst the scaremongers out there would have you believe borrowers are sitting waiting to see rates drop, the reality is that we are in a quiet phase for product expiries, and product transfers continue to win the day whilst lender margins are tight.
“The stability of a new government, an expected rate cut towards the end of the summer, and increasing lender competition will start to reverse this activity trend. However, I don’t expect this to happen until the kids are well into the first term of their new school year.”
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