More than half of homeowners coming to the end of a fixed-rate deal are undecided about whether to stay with their current lender or remortgage elsewhere, despite increased product choice across the market.

Research commissioned by Alexander Hall surveyed 1,035 homeowners whose fixed rates expire within the next year. It found 56% have yet to decide on their next move, while 32% plan to stay put and just 12% intend to switch lenders.

For those considering a move, securing a better rate and reducing monthly payments were the primary drivers. Improvements in loan-to-value (LTV), the ability to release equity and the option to borrow more also ranked highly.

OPPORTUNITY KNOCKS

A fresh valuation during a remortgage can push borrowers into a lower LTV band if house prices have risen, potentially unlocking more competitive pricing. Switching lenders can also create opportunities to adjust mortgage terms, either shortening the term to repay sooner or extending it to ease affordability pressures.

However, those choosing to remain with their current lender appear to be motivated largely by convenience.

The most common reasons cited were speed and simplicity, along with avoiding full affordability checks. Concerns over credit scores or changes in income also featured prominently.

Alexander Hall’s analysis shows remortgage product availability is 13.7% higher than a year ago, while home mover products have increased by 13.5%, reflecting greater lender competition.

ADDING VALUE

Richard Merrett, managing director of Alexander Hall, said: “Sometimes sticking with a long-term relationship feels like the easiest option, but convenience and uncertainty can keep people going through the motions when there may be a far better alternative available.

“This is certainly true in today’s mortgage market. Our analysis shows that product availability has increased substantially over the last year, meaning homeowners now have far more choice than they might expect. By defaulting to the easiest route, some borrowers could end up paying more than they need to.

“Concerns around changing circumstances, affordability checks or credit scores often act as a barrier, but this is exactly where a good mortgage adviser adds value. We can give homeowners a clear view of what’s available in the current market, helping them make an informed decision at their own pace, rather than committing out of fear or uncertainty.”