Remortgage surge before general election

UK remortgage volumes rose by 8% to nearly 32,000 in May ahead of the General Election in June, LMS figures show.

LMS suggested there was a link between the number of remortgagors and the nation’s expectation that the Conservatives would secure an overwhelming majority in the election.

In April by comparison there were 29,300 remortgages.

Andy Knee, chief executive of LMS, said: “Pollsters and the public had predicted a solid election result of a 100+ seat majority for the Conservative Party and continuity at the heart of government.

“Pre-election confidence was the main driver behind the increase in the number of remortgage transactions.

“Remortgagors were so confident that the outcome of the snap election would provide stability that over half said they expected low rates to remain in place for at least the next year.”

Three in five (58%) remortgagors said they expected no change in the average mortgage rate over the next 12 months, up from 53% who said the same in April.

Some remortgaged in case there was a surprise result however, as 15% said the main reason they did so was to protect against a shock outcome.

Indeed, over a third (34%) remortgaged onto a 5-year fix in May despite just one in 10 (8%) having this product type before doing so.

Theresa May’s Conservatives lost their overall majority and were forced to sign a deal with the Democratic Unionist Party to stay in power.

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Written by: Houseladder