Remortgaging is set to regain ground as the main refinancing route over the next two years as improving affordability allows more borrowers to switch lender rather than rely on product transfers.
According to IMLA’s New Normal 2026/27 report remortgaging volumes are forecast to rise to £103bn in 2026 and £110bn in 2027 while growth in product transfers is expected to slow after record levels in 2025.
Product transfers surged in recent years as sharp interest rate rises squeezed affordability, limiting borrowers’ ability to meet refinancing criteria.
better rates are opening up more options.
IMLA says easing mortgage rates are now reversing that trend, opening up more options for borrowers coming to the end of fixed-rate deals.
The shift comes as an estimated 1.8 million borrowers are due to roll off fixed rates in 2026 alone, increasing the likelihood of more active refinancing decisions as affordability pressures continue to ease.
IMLA also expects intermediaries to play a central role with brokers accounting for close to 90% of mortgage transactions as borrowers seek advice tailored to changing circumstances.
HEALTHY DEVELOPMENT
Kate Davies, executive director of IMLA, said: “The re-emergence of remortgaging is a healthy development for the market.
“While product transfers have played an important role during a period of stretched affordability, they may not always provide the best long-term answer for borrowers whose circumstances have evolved.
“For many people, a remortgage is a natural opportunity to take stock and reassess their wider financial position.
“Income, outgoings, family circumstances and future plans can all change in nuanced ways over the life of a mortgage, and it makes sense for those changes to be reflected in the advice and solutions borrowers receive.”
She added: “With affordability improving and lenders continuing to innovate within a robust regulatory framework, many borrowers now stand to benefit from having a professional broker scour the whole market for the most suitable mortgage solution, rather than simply defaulting to another product with their current lender.”
