UK Finance reveals mortgage product transfer data

Most borrowers choose to remain with their current lender when they switch

UK Finance has published mortgage product transfer figures for the first time.

390,200 homeowners switched product with their existing provider (product transfers) in the first quarter of 2018.

By value, this represents £53.7bn of mortgage debt refinanced internally. These figures do not feature in any market data on remortgaging, or other published gross mortgage lending data.

Of the total number of product transfers, 203,200 transfers, worth £29.5 billion, were conducted on an advised basis and 187,000 transfers, worth £24.2 billion, were execution-only.

Jackie Bennett, director of mortgages at UK Finance, said: “These figures echo the FCA’s findings in its interim Mortgages Market Study: customer engagement is high and the majority of mortgage customers switch to a new deal shortly after their previous deal expires. Our data also supports the FCA’s observation that most borrowers choose to remain with their current lender when they switch product.

“It’s a positive outcome for consumers that they can make these transactions in a wide variety of ways to suit their needs. Borrowers who know exactly the product they want can elect to switch quickly and efficiently through the execution-only route.

“But, for those who require help in choosing the right product, mortgage advice is widely available through both direct channels and from intermediaries, with more than half of borrowers taking advice for their new deal.”

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