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Remortgaging

Journalist: Myra Butterworth, Freelance

ended 05. November 2024

Hi, I'm writing for Mortgage Solutions about remortgaging versus product transfers.

And I am looking for comment on the following:

  • Are brokers seeing a noticeable shift in people remortgaging versus product transfer now rates have fallen?
  • What impact has this had on their business income?  
  • And are some borrowers still hesitant to remortgage? If so, why?

 

 

 

3 responses from the Newspage community

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Elliott Culley
Director at Switch Mortgage Finance
Some mortgage lenders have returned to the old format of only providing new rates for existing borrowers 3 months before their renewal date. This has meant more remortgages away as some borrowers want to sort out the new rate more quickly. The majority of the time the rates offered to exisiting borrowers aren't great so remortgaging is 9/10 the best option. Some borrower were holding off on remortgages with the rates dropping, however with rates starting to increase, some borrowers have naturally decided to try and sort out their plans more quickly.
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Kundan Bhaduri
Property Developer and Portfolio Landlord at The Kushman Group
As a landlord currently remortgaging several properties, I’m seeing first-hand why many investors are opting for product transfers over full remortgages. With rates dropping, product transfers offer a straightforward way to lock in a deal without the paperwork, costs, and time required for a complete remortgage. It’s particularly appealing for portfolio owners who want to secure properties quickly while keeping costs in check. Yet, there’s still hesitation around remortgaging, especially among those worried about future rate changes. Locking in a new fixed term can feel risky, given potential shifts in the economy. Many of us are trying to balance immediate financial sense with long-term market uncertainty, which makes product transfers the more flexible choice for now.
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Dennigan Tyson
Mortgage & Protection Adviser at Pia Financial Solutions
This has been the topic of the year within my remit and in most cases it has been quite mixed. I think the "6 month" product transfer window has shortened with some banks and this has impacted consumers and the adivce that I have given.

I don't think there is any hesitation from customers mind, I think it's more the capability of the advisor to constantly monitor the rates and ensure that clients don't jump too soon and allow themselves as many options up to 1 month before.

I have done it throughout the year and my clients have often benefitted hugely with interest rate reductions and monthly savings.