Those who remortgaged in May saw their repayments increase by an average of £317.20, according to the latest LMS remortgage report.
The monthly analysis found 43% of borrowers increased their mortgage size in May, while instructions increased by 11%.
However, 34% saw no change in their total loan size and 23% reduced their loan size.
There were 1% fewer remortgages completed in May and pipeline cases decreased by 2% compared to the previous month.
The report found that 50% of those who remortgaged took out a five-year fixed rate product, the most popular product in May.
LMS chief executive Nick Chadbourne expects instructions and pipelines to grow in the second half of this year.
“As predicted, instructions increased again in May following a seasonal dip the month before,” says Chadbourne.
“Until now, we have seen a lot of people stay on variable rates in the hope that, if they stick it out, rates will fall. However, the base rate increased to 4.5% early on so it’s not a huge surprise that people looking to remortgage when their product expires are aiming to come off SVRs for more stability.
“As we head into the second half of the year, we expect a big jump in instructions and the pipeline to swell. 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. Anyone doing so may well choose a two year fix in the expectation of a lower rate next time. If the market predictions are correct, this would be wise as rates will likely come down during 2024.”
