The average monthly payment increase for those who remortgaged in January 2023 was £239, according to the latest monthly remortgage snapshot from LMS.

As many as 36% of borrowers increased their loan size during the month. Nearly two thirds (63%) of those who remortgaged took out a five-year fixed-rate product – the most popular option in January. Some 37% said their main aim when remortgaging was to gain longer-term security – the most popular response.

Meanwhile, 39% of borrowers saw no change in their total remortgage loan size during January, while 26% reduced the size. 

The average loan increase post remortgage was £17,997 and the average decrease was £14,259. The average monthly repayment decrease was £270.

On a regional level, the average remortgage loan amount in London and the South East was £306,943, while the average for the rest of the UK stood at £156,659, putting remortgage loan amounts 96% higher in London and the South East than elsewhere.

Nick Chadbourne, CEO of LMS, commented: “As appears to be an increasing trend, those who remortgaged in January were primarily seeking to attain longer term security with nearly two-thirds opting for five-year fixed rates, which continues to be the most popular product. 

“Moving forwards, increased market activity is likely to continue with mortgage rates falling below 4% for the first time since September. This is despite the repeated Bank of England interest rate rises as these have already been priced into the market. 

“As such, we expect to see instructions and the pipeline grow over the next few weeks as well as a rise in cancellations since borrowers who secured rates in December may well reapply at these more attractive rates.”