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The future outlook of growing product transfers and remortgaging changes
We are all aware of how product transfer (PT) business has grown and how a changed interest rate environment, presenting far higher pricing to existing borrowers, has appeared to solidify its dominance.

According to the most recent figures from IMLA for last year, remortgage lending business fell from £82.73bn in 2023 to £78bn in 2024, and while PT lending levels also fell, we are still talking about this latter sector being three times that of remortgaging.
The outlook for remortgaging for both 2025 and 2026 does appear to be stronger. IMLA anticipates a £10bn increase in 2025, taking it up to £88bn, while this will grow further to £94bn in 2026.
It might be relieving for the adviser community to learn the amount of PT business completed in 2024 was also down on 2023, especially considering that – at some points in the recent past – it has looked like PT would only continue to go in one direction.
That however faltered in 2024, with PT business down from just shy of £240bn in 2023 to close to £221bn last year. However, IMLA believes this will rise again to its 2023 level in 2025 and further again to £260bn in 2026.
Compared to remortgage activity we are talking about PTs being approximately three times as much lending, and given most PTs pay less of a procuration fee than a full remortgage, advisers will need to be aware of the ongoing potential hit to their income levels. Yet, there are clearly positives to be grasped from a different interest rate environment and the impact this might have on affordability.
Most recently, we have had a situation where a significant number of borrowers could not meet the affordability criteria to be remortgaged to a different lender – and had to take a PT – now they are likely to have a greater array of options to be moved elsewhere.
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In the early days of 2025, we’re seeing a concerted effort from some lenders to offer more attractive remortgage options. We ourselves have just launched a fee assisted legal service on a range of special edition, remortgage-only two- and five-year fixes, which we believe will be particularly welcome for those existing borrowers who are shifting to us, want to keep that upfront cost down, and also want to ensure they get excellent legal support to save them time and money when completing their remortgage.
Having options, not just on price but also criteria and add-ons such as fee assisted legals, are also hugely important as we should not underestimate what a difference this can all make to household finances.
The remortgage sector might have been somewhat subdued over the last couple of years, but the ground feels much firmer as we enter 2025, and advisers are likely to be required much more this year to deliver in this area. Let’s not lose sight of this opportunity as both advisers and lenders, as we seek to ensure refinancing borrowers have all the options they need.
*This article was originally published on Mortgage Solutions
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