According to the latest data from UK Finance, 385,400 homeowners switched product with their existing provider between April and June for a total value of £53.8bn.
While the number of transfers was down slightly on the 390,200 in January to March, the value rose from £53.7bn, keeping it on course to break the £200bn barrier for the year.
Encouragingly for mortgage brokers, more business went through the advised channel in absolute terms and as a proportion of the market.
Of the total number of product transfers, 210,300 transfers worth £31.2bn, were conducted on an advised basis – 54.5% and 57.9% of the market respectively.
In the previous quarter 203,200 transfers worth £29.5bn were advised – 52% and 54.9% of the respective totals.
UK Finance does not separate sales advised by brokers or from in-house advisers.
Target for new entrants
This week’s Mortgage Solutions poll found that brokers are increasingly remodelling their business to factor in product transfer business – although this could sometimes be at the expense of remortgages.
Brokers have been urged to make the most of the product transfer market but also to not rely on it and procuration fees alone.
Last week Mortgage Advice Bureau CEO Peter Brodnicki warned brokers that product transfers would be an easy target for new technology firms to enter the market.
And yesterday Lloyds Bank managing director of intermediaries Mike Jones added that as lenders were seeing margins squeezed and paying more in proc fees, they may increasingly look to go direct.
High customer engagement
The figures were released on the same day as a super complaint was been filed by Citizens Advice concerning customer loyalty, including the penalty of standard variable rates (SVRs).
UK Finance director of mortgages Jackie Bennett said the figures showed customer engagement remained high and that the majority of mortgage customers switched to a new deal shortly after their previous deal expired.
“It’s a positive outcome for consumers that they can make these transactions in a wide variety of ways to suit their needs,” she said.
“Borrowers who know exactly the product they want can elect to switch quickly and efficiently through the execution-only route.
“But, for those who require help in choosing the right product, mortgage advice is widely available through both direct channels and from intermediaries, with more than half of borrowers taking advice for their new deal.”