More than eight in 10 homeowners who’ve remortgaged since the end of 2022 have done so with their existing lender, according to UK Finance.
Affordability pressures are likely to have contributed to 83% of borrowers refinancing with the same lender over the past couple of years, the trade body’s latest Household Review said, up from 75% between 2020 and2022. Switching to a different mortgage deal with the same lender can be more straightforward than remortgaging to a new mortgage provider, especially if you’re not changing the terms of your mortgage – such as the loan amount or the term of the mortgage - as your lender will have already been through the mortgage application process with you. That means they won’t necessarily require you to show them all the same information you provided when you first took out a mortgage, which can make things much simpler.
A spokesman for UK Finance said: “The mortgage market continues to offer very competitive rates to retain their existing customers and, with internal product transfers not subject to affordability tests in the same way as external remortgages, we have seen proportionally more customers choosing to refinance with their existing lender.”
However, with mortgage rates gradually starting to ease, helping to alleviate affordability pressures, the Review said a move towards external remortgaging was likely next year, although product transfers will remain popular for the time being.
Overall, mortgage lending rose again between July and September this year, despite affordability challenges facing first-time buyers in particular, with the number of completions increasing by 15% year-on-year.
2025 set to be a bumper year for remortgaging
If your deal is coming to an end soon, you don’t have to wait until it finishes before you start looking for your next mortgage.
Most lenders will allow you to sign up for your next mortgage at least three months in advance, so you should aim to start your remortgage search sooner rather than later. Some will allow you to reserve a deal up to 6 months in advance.
If you’re one of nearly 700,000 people who are currently paying their lender’s standard variable rate, you should be free to remortgage now. Doing so could save you hundreds, if not thousands of pounds a year, as standard variable rates are usually much more expensive than other mortgage rates.
When thinking about remortgaging, always check what your existing lender can offer you first. Our online Mortgage Finder lets you check your eligibility and search for the best available deals. It also allows you to tailor your search to include deals from your current lender to ensure you get the right mortgage to suit your needs.
