Remortgaging is expected to see a “real recovery” in 2025 as more borrowers consider switching lenders when their fixed rate deals end, according to PRIMIS.
A recent poll found that two in five advisers are already noticing a “noticeable increase” in customers switching lenders.
Additionally, 93% of those surveyed expect remortgage volumes to rise further over the next year.
Data from UK Finance indicated that in Q2 2023, 84% of remortgagers stayed with their current lender instead of moving elsewhere.
As 2-year terms mature, 38% of brokers polled by PRIMIS reported that customers are now choosing to switch lenders, having adjusted to higher monthly repayments.
Craig Hall (pictured), director of strategic partnerships at PRIMIS, said: “We’ve just seen the Bank of England slash the base rate from 4.75% to 4.5% at its first monetary policy committee meeting of the year.
“That’s driving a real bump in competition, with most lenders rushing to cut their own rates off the back of it.
“Switching to a new lender could be a better solution than sticking with their existing lender.”
Hall added: “While product transfers do mean it’s possible to switch to a new deal without a full reunderwrite, many lenders don’t allow for any change in term or switching to part and part or interest-only temporarily.
“For many borrowers facing a big step up in repayments, that could mean extending their term to absorb those higher costs.
He said: “This highlights the reason for customers to seek independent advice to review both their mortgage and protection needs remain adequate and is another reason remortgage volumes are going to stage a real recovery over the coming months.”
