Two-Year Fixes Lead the Way as Remortgage Completions Jump 71%

A rush of homeowners locking in short-term certainty pushed remortgage completions up 71% in July, with two-year fixes now the top choice.

The UK remortgage market saw a sharp increase in activity last month, with completions climbing 71% compared to June, according to LMS’s latest Monthly Remortgage Snapshot. Two-year fixed-rate products were the standout choice, taken by 46% of borrowers, while 41% opted for five-year fixes. Just 6% chose three- or ten-year products. While completions soared, pipeline cases dipped 9% and new instructions fell 4%, pointing to a wave of borrowers finalising deals before current products expired. The cancellation rate also ticked up slightly by 1%.

Household finances remain under pressure. Borrowers who remortgaged in July faced an average monthly repayment increase of £329. Over half (56%) saw their payments rise, while a third managed to reduce costs by an average of £207 per month. At the same time, many homeowners used remortgaging as a chance to unlock extra funds. Nearly half (43%) increased their loan size, borrowing an additional £20,848 on average — almost double the reduction made by those who cut back. A further 30% saw no change to their loan size, showing the varied strategies borrowers are adopting to balance costs and cash flow.