More than 1.6 million borrowers switched product or remortgaged in 2018, making up almost one in five of all homeowner mortgages, according to UK Finance.
Of these, over one million (1,189,100) borrowers opted for a new deal with their existing provider through a product transfer, representing £158.7 billion of mortgage debt refinanced internally.
The total number of product transfers that were conducted on an advised basis was 624,900, worth £85.7 billion, while 564,300 transfers, worth £73 billion, were execution-only.
In the fourth quarter of 2018, there were 331,500 homeowners product transfers representing £46.1 billion of mortgage debt refinanced internally.
Of the total number of product transfers in the fourth quarter of 2018, 176,700 transfers, worth £25.2 billion, were conducted on an advised basis and 154,900 transfers, worth £20.9 billion, were execution-only.
These figures do not feature in any market data on remortgaging, or other published gross mortgage lending data.
Jackie Bennett, director of mortgages at UK Finance, said: “This shows a high level of customer engagement, as borrowers continue to take advantage of a competitive marketplace to switch to a product that best suits their needs.
“For those who need help in finding the right product, support is widely available through both direct channels and intermediaries, with more than half of borrowers taking advice for their new deal.”
Mark Harris, chief executive of mortgage broker SPF Private Clients, commented: “It is good to see these stats are now being produced and that the product transfer market was a little larger than most people would have thought.
“Product transfers are good for lenders with big back books but for new lenders they are going to have to offer competitive products to compete and attract business away. From a borrower’s perspective, this makes it a great market.”
By Joanne Atkin
Source: Mortgage Finance Gazette