Remortgaging picks up
Remortgage instructions picked up by 12.8% last week, compared to the week before, data from conveyancing solutions provider LMS has found.
Instructions are down 15% compared to levels immediately before the lockdown.
There are set to be 4% fewer completions in April compared to March.
Unsurprisingly more remortgages are being cancelled, as 6.7% were halted in April, up from 1.3% in March.
Nick Chadbourne, chief executive of LMS, said: “Increased instruction levels are a positive sign for the market, with borrower enquiries nearing pre-lockdown numbers. Growth over the last two weeks is even more encouraging, and we hope that this trend continues as we move through spring.
“Fees-assisted remortgages are increasing as a share of remortgage activity, which suggests that brokers are identifying the benefits of these products and are passing them onto their clients. FARs could drive new instructions and overall activity in the coming weeks, as they offer unique advantages for the present situation.
“Reduced ID requirements, less paperwork for customers, and lower need for searches all combine to overcome current challenges to remortgaging and could reduce the likelihood that transactions are cancelled.
“More encouragement can be taken from consistent completion, pipeline, and cancellation figures. Though pipeline figures are down slightly on last year, they’re in line with recent months, showing that the market has stabilised.”