The UK remortgage market showed renewed momentum in May 2025, with fresh data revealing a 12% surge in instructions compared to April 2025, according to the latest LMS Monthly Remortgage Snapshot. This sharp increase points to growing consumer interest in remortgaging as a way to manage rising housing costs and property ownership uncertainty.
While completions rose by 5% and pipeline activity rose by 3%, the figures collectively signal a sustained and healthy flow of remortgage transactions. However, not all indicators were positive. The remortgage cancellation rate saw a modest 2% increase, suggesting some borrowers may be rethinking their strategies mid-application.
Why Are More Homeowners Choosing to Remortgage?
Several factors are driving this rise in remortgage instructions:
Falling House Prices
Declining property prices, particularly in parts of the South of England, are discouraging homeowners from selling up. With less incentive to move, many are opting to remortgage and stay put, using equity release or better mortgage terms to finance renovations or reduce outgoings.
Fixed-Term Expiries
A growing number of homeowners are approaching the end of fixed-rate mortgage deals. With interest rates having climbed in recent years, remortgaging now offers a way to secure more favourable terms before rates rise further or to avoid a jump onto the standard variable rate.
Financial Planning Amid Uncertainty
With the cost of living still high and inflation lingering, many households are remortgaging to regain financial control. In fact, 29% of May’s remortgaging borrowers cited lowering monthly payments as their main motivation.
What Are the Financial Realities of Remortgaging?
Despite the strategic advantages, many borrowers are still facing higher costs. Those who remortgaged in May saw an average increase of £294.29 in their monthly repayments. Nevertheless, nearly half (46%) chose to increase their loan size, with an average uplift of £21,474.31. Often to fund home improvements or consolidate other debts.
Interestingly, 23% reduced their loan size, saving an average of £12,902.82, while 32% kept their borrowing level unchanged. This diversity in behaviour shows that remortgage decisions are increasingly tailored to individual financial circumstances.
Product Trends: 5-Year Fixed Deals Lead the Way
Among those choosing to remortgage, 47% locked into a five-year fixed-rate deal, which remains the most popular product. With interest rate volatility still a concern, these longer-term deals offer homeowners valuable predictability.
Regional Differences in Remortgage Amounts
London continues to skew national averages, with the average remortgage loan in the capital reaching £331,067. More than double the UK average outside London, which stood at £163,945. This reflects both the higher property values and the differing financial pressures faced by London homeowners.
A Market in Transition
The rise in remortgage activity is a clear sign that homeowners are adapting to a shifting property and economic landscape. Whether motivated by expiring fixed terms, financial pressures, or falling property values, more Britons are reassessing their mortgage arrangements to stay financially secure. As interest rates and market conditions continue to evolve, it’s likely that remortgage volumes will remain strong throughout the rest of the year. If you are interested in exploring your mortgage options, please feel free to give our team a call today.
You can use our free remortgage calculator here to get an idea of how much you can potentially borrow, and what your new monthly payments could look like.
