Remortgage instructions rose by 50% in September as rumours of an interest rate rise continue to gain traction, according to the latest data from LMS.
Its data shows that 108% more remortgages completed in September, with pipeline cases increasing by 7%.
45% of borrowers increased their loan size in September and 28% said their primary aim was to release equity from their property.
Nick Chadbourne, CEO of LMS, commented: “Remortgage instructions rose by 50% in September as rumours of an interest rate rise loom large, which may impact the cost of mortgages. Savvy borrowers nearing the end of their current term, and their brokers, will have anticipated this and have begun to shop around to secure a longer fixed-rate deal to weather any increases in their monthly repayments.
“The number of remortgage completions soared to 108%, as September marked one of the highest numbers of ERC expiries of the year.
“As some lenders will be inundated with cases as a result of the current rate wars, panel managers will have an important role to play in mitigating any mismatch in capacity across the industry, by ensuring that instructions are evenly balanced between firms to maintain service levels.”