UK Finance: Product transfers up 1.4%
A total of 1,195,200 homeowners switched products with their existing providers in 2019, up 1.4% on 2018 according to UK Finance.
This figure represents £167.4bn of mortgage borrowing refinanced internally.
The data shows that 662,700 transfers, worth £97bn, were conducted on an advised basis and 532,400, worth £70.4bn, were on an execution-only basis.
This represents a 6.9% and 4.8% rise on 2018, respectively.
Looking at Q4 of 2019, there were 309,300 product transfers which is a decrease of 4.6% year-on-year, of which 166,700 were advised and 142,600 were execution-only.
In monitory terms, product transfers in Q4 equated to £44.3bn of mortgage borrowing, a decrease of 1.5% year-on-year.
Of these, £25.2bn was advised and £19.2bn was execution-only.
Martijn van der Heijden, chief strategy officer at Habito, said: “UK Finance’s latest product transfer data shows a decline in product transfers.
“This supports a trend we have observed in our customer data, which shows that remortgages as a percentage of transactions are tracking around 2% higher at the start of 2020 compared to the same period last year.
“Although it is still quite early to draw firm conclusions, it appears that an increasing number of people are turning to free, whole of market brokers to take advantage of great advice and highly competitive low-interest-rate deals, rather than simply continuing with the same provider.
“This is an encouraging trend. We know from our own extensive research that loyalty does not always pay and that many homeowners stand to save up to £300 if they switch to a better deal.
“The key is that homeowners nearing the end of their fixed term leave plenty of time to remortgage, ideally no longer than four months, to start their whole of market search.”