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.
Victoria Hartley is contributing editor at Mortgage Solutions, Specialist Lending Solutions, Your Money and Your Mortgage at London-based publishing company AE3 Media.
She has an MA in Radio from Goldsmiths after gaining a 2:1 in a Comparative American Studies BA at Warwick University. She also holds a TEFL qualification and taught overseas in Mexico and Japan from 1994 to 1997.
Her role includes editorial oversight of the news, analysis and features, event content management and strategic and editorial consultancy for the AE3 Media group. She is an experienced video, broadcast and live-event host and regularly chairs web and podcast debates and interviews.
Multiple award nominations have resulted in two wins: Santander Media Awards, trade journalist of the year and Headlinemoney Awards, mortgage journalist of the year (B2B). Here is one of the award-winning pieces: https://www.mortgagesolutions.co.uk/news/2011/07/21/exclusive-tale-bailey-fraud-witness/
Previous roles include editorships of Mortgage Solutions, consumer title What Mortgage and trade title Credit Today as well as a stint freelancing for a variety of outlets including The Guardian and Which? Money.
