Borrowers who remortgaged in June saw their average monthly payment jump by £236, according to LMS.
The conveyancing services firm’s Monthly Remortgage Snapshot adds that 52% of borrowers increased their loan size last month to an average of £22,644.
The average remortgage loan amount in London and the South East was £301,982 while the average for the rest of the UK stood at £147,780 putting remortgage loan amounts 104% higher in London and the South East than the rest of the country.
The most popular product was a five-year fixed-rate loan used by 67% of customers, with 30% saying the main aim of remortgaging was to lower their monthly payments, which was the most popular reason.
However, there were 35% fewer remortgages completed last month and 13% fewer instructions. Although the survey says the remortgage pipeline lifted by 10% in June compared to the previous month.
LMS chief executive Nick Chadbourne says: “There will be an uptick in remortgage activity as more consumers turn to remortgaging to offset their cost of living struggles.
“While the figures show that instructions and completions have dropped, there is a strong pipeline of activity as June saw the biggest monthly increase in pipeline cases since the start of 2022. With the next early repayment charge date coming up in July, we expect instructions will pick up again.
“Unlike in previous months when consumers were primarily remortgaging in order to lower their monthly payments, nearly a third, or 30%, of those who remortgaged in June did so as a way of borrowing more money.
“It could be that more consumers are looking to secure longer term fixed-rate products to improve financial security and manage the cost of living struggles.
“As this crisis intensifies further and fears of a recession mount, this trend is likely to continue and the industry will need to cope with increased demand.”