Instruction volumes increased by 6.7% between the end of May and the first week of June
Remortgage instructions in the first week of June were 6% above the average weekly instruction volumes in June 2019, Legal Marketing Services (LMS) reveals.
According to the conveyancing services provider, on a month on month basis, instruction volumes were also 7.3% higher in the first week of June compared with the first week of May.
Between the final week of May and the first week of June, instruction volumes increased by 6.7%.
LMS says June completion volumes reduced by 30.2% than those in the first week of May, which it says could be linked to seasonal ERC expiries, as June is traditionally a quieter month.
The trend of rising cancellations continued, with volumes increasing in the first week of June, with higher levels compared with the levels during the same period in May (up 45.8%), and when compared with the average weekly number for June 2019 (up 92%).
LMS says legal teams are clearing old and inactive cases as firms settle into COVID-19 working, and this is likely to be the reason behind this increase.
LMS chief executive Nick Chadbourne says: The first week of June marks another consistent week of healthy instruction volumes. We are seeing a continued return towards stability in this area, with a consistent increase in new cases coming onto the books. It is particularly promising to note that when making year on year comparisons between June 2019 and June 2020, we are seeing increased volumes at present.
He says, increasing cancellations volumes are cause for quiet concern and something we will continue to monitor as the month continues. Rising levels could be caused by offers from Q4 2019 expiring and firms clearing out aged cases at the beginning of the month. Moreover, as the COVID-19 crisis continues and borrowers’ circumstances continue to change, and new deals enter the market, previously attractive offers may become unappealing. This could be having a knock-on effect as borrowers look to change deals and ensure they are getting the best available product at that time.