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Product transfer popularity increases in Q2 with majority advised – UK Finance

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  • 23/08/2019
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Product transfer popularity increases in Q2 with majority advised – UK Finance
Product transfer (PT) take up has grown 7.3 per cent year-on-year with data suggesting more of these like-for-like mortgage transactions are being offered alongside advice, as more consumers are also choosing the simplicity of a PT over a remortgage.

 

The Q2 PT figures show 292,500 homeowners switched product with their existing provider, with 164,100 on an advised basis and 128,400 through execution-only.

By value, internal product switching represented £41.4bn of mortgage borrowing, which is an increase of 16.3 per cent year-on-year. That divides into £24.4bn on an advised basis, and £17bn execution-only.

UK Finance data for the first three months of 2019 recorded a total of 116,030 remortgages, worth £20.7bn, completed either as pound-for-pound remortgages or with further equity taken out.

 

The trajectory

Last year, almost 1.2m people took a product transfer with their existing lender worth £158.7bn of lending activity, around double the figure for remortgages.

These figures are not included in UK Finance mortgage market data for gross lending or remortgaging.

However, the intermediary industry continues to examine these figures closely to understand whether product transfers are revenue generators or revenue detractors from the overall intermediated remortgage market with the result too close to call so far.

 

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