After a fairly lengthy period where the significant mode of refinancing appeared to be via a product transfer (PT), it seems remortgaging could be making a real return, not least as a result of a much-changed mortgage product rate picture, precipitated by both Bank Base Rate (BBR) and swap rate drops.

According to recent research out of LMS, remortgage activity rose by a fifth in July, and that was before the cut to BBR was even introduced.

Certainly, the perception of a strengthening remortgage market is one that chimes with our own figures at Broker Conveyancing. Between July and August we saw a 4% shift in the sale and purchase/remortgage instruction split from our broker users, up from 40% in that first month, to 44%.

Given that lending figures suggest a burgeoning number of mortgage maturities through September/October and November – particularly in that middle month – and the recent falls in mortgage rates will have acted as a catalyst for a number of borrowers who couldn’t, or didn’t wish to, refinance prior to now, then I think it’s likely that remortgage activity will continue to grow as we progress through the year.

That, of course, provides a real opportunity for advisers, especially – as noted above – if there are far more competitive remortgage options available for clients, and they are not just reliant on a PT for those who might not make the affordability criteria necessary to move to a new lender.

Lower rates lower the affordability bar, and in that regard, remortgage demand opens up the door not just for that one-off transaction, but to also highlight any other financial needs the client might have acquired since the last mortgage was put in place.

Whereas a PT tends to hold back a full financial review, a remortgage certainly does not, and advisers can make their advice (literally) pay here in other areas such as conveyancing, protection, GI and the like.

At Broker Conveyancing we are making sure advisers and their remortgaging clients have access to excellent quality conveyancing, that it covers all needs but is also affordable. We’ve recently launched an exclusive £245 fixed-price remortgage product with ONP Solicitors that not only gives legal representation to the client, but also delivers a £70 referral fee to the introducing broker.

‘Fees assisted’ conveyancing from the lender are likely to be available but if there is cashback on offer, or even if there is not, then opting for this fixed-price remortgage conveyancing gets access to specialists, plus we have a dedicated Broker Conveyancing team at ONP who will look after the adviser and the client right through to completion.

Add in that extra referral income to each and every remortgage client and you might be able to sense the difference this could make to the bottom line, particularly if we do see further rate cuts across the mortgage market and demand improves further.

I’m writing this before the next Monetary Policy Committee (MPC) and therefore can’t know whether we will see a second monthly cut in a row. It seems markets are not convinced there will be however given GDP has effectively flatlined in recent months, there are some commentators and economists speculating that a cut is not off the table, and we might expect one before the end of year if inflation levels are maintained.

Certainly, if we are to believe the recent prediction from Goldman Sachs that BBR will hit 3% by September 2025, then the MPC is going to have to go some with multiple cuts over the next 12 months.

My view is that a 3% BBR in a year is extremely bullish, however that’s not to say we won’t see a 12-month period when cuts are prevalent, and if each cut is met with a significant increase in remortgage interest and demand, as we saw after August, then we might all expect a much healthier market from existing borrowers.

Delivering positive outcomes for those remortgaging clients doesn’t begin and end with the mortgage, but should cascade to the likes of conveyancing. After all, until the client completes, no-one gets paid, and therefore it makes sense to place them in both the best financial and conveyancing position in order to get to that outcome as soon as possible.

Mark Tosetti is chief executive officer of Broker Conveyancing