Improved market conditions are expected to fuel the remortgage market this year, according to the Intermediary Mortgage Lenders’ Association.
Gradually reducing mortgage rates mean borrowers are more likely to meet affordability criteria when remortgaging, reducing the need to use a product transfer with the same lender.
The trade body predicted remortgage volumes to rise from £93bn in 2025 to £103bn in 2026 and £110bn in 2027.
Kate Davies, executive director of IMLA, said: “The re-emergence of remortgaging is a healthy development for the market. While product transfers have played an important role during a period of stretched affordability, they may not always provide the best long-term answer for borrowers whose circumstances have evolved.
“For many people, a remortgage is a natural opportunity to take stock and reassess their wider financial position. Income, outgoings, family circumstances and future plans can all change in nuanced ways over the life of a mortgage, and it makes sense for those changes to be reflected in the advice and solutions borrowers receive.
“With affordability improving and lenders continuing to innovate within a robust regulatory framework, many borrowers now stand to benefit from having a professional broker scour the whole market for the most suitable mortgage solution, rather than simply defaulting to another product with their current lender.”
Intermediaries are expected to remain central to this shift. The broker channel currently accounts for nine in 10 mortgage transactions.
According to moneyfacts the average mortgage rate stands at 4.90%.
