The Intermediary – January 2026 - Flipbook - Page 14
RESIDENTIAL
Opinion
Product transfers vs
remortgages: Is the
tide turning?
W
ith the
Financial
Conduct
Authority
(FCA) recently
easing some
remortgage affordability rules,
moving to a new deal is suddenly
simpler for certain clients. As long
as certain criteria are met, lenders
can apply a Modified Affordability
Assessment (MAA), essentially a
lighter version of affordability checks.
This gives some borrowers greater
flexibility to shop around and avoid
being tied to the same lender if their
circumstances change.
Although this may be welcome
news for many mortgage customers, it
remains for lenders to decide whether
to apply the MMA, and standard
checks will continue to apply where a
borrower’s circumstances fall outside
the permied criteria or have changed
beyond the expected range.
So, with remortgaging potentially
becoming easier for eligible clients,
what does this mean for lenders and
brokers? Could retention be trickier
than ever?
In our H2 2025 Mortgage Lender
Benchmark, we asked brokers about
the trends they’re seeing this year
when it comes to clients remortgaging
to a new lender versus simply
switching their deal.
PTs still lead for now
The responses throw up some
interesting results. Just under a third
of brokers said they’re seeing about
the same number of product transfers
(PTs) and external remortgages.
A further 25% reported slightly
more product transfers, while 17%
saw slightly more external deals. Only
16% said they mostly stick to product
transfers, and about 11% are mainly
12
The Intermediary | January 2026
seeing external remortgages.
The takeaway? Product transfers
remain slightly more popular, with
the simplicity of staying with the same
lender still popular for certain clients.
But there appears to be a growing
appetite for external remortgages.
Brokers are weighing the practical
benefits of product transfers against
the potential advantages of finding
clients a beer deal elsewhere. And if
the FCA continues to ease affordability
rules, that balance could shi further.
Fast and hassle-free
So, why are product transfers still
favoured over remortgages? Because
they’re fast, predictable, and hasslefree. More than 52% of brokers said
retention and pricing were the main
reasons they recommend a product
transfer versus a remortgage.
Speed and service come next,
with over 47% highlighting these
factors. This is no surprise, given that
product transfers usually involve less
paperwork and no revaluation.
Despite the FCA’s eased rules, nearly
a third of brokers said affordability
barriers still make transferring
products more favourable than
remortgaging.
Meanwhile, around a quarter
mentioned criteria fit and client
preference.
Change the goalposts
The FCA’s review suggests further
changes may be coming to responsible
lending rules, potentially opening
the door to even greater flexibility in
affordability checks. If that happens,
56% of brokers predict a small shi
towards external remortgages, while
16% foresee a large shi. Meanwhile,
27% expect no change.
For any serious shi, it seems the
FCA may indeed need to ease things
JAKE SANDFORD
is head of data and analytics at
Smart Money People
further. Even with the current
policy changes, half of brokers told
us that meeting full affordability
requirements remains the biggest
blocker to remortgaging, suggesting
the policy only helps a small
proportion of clients.
Aside from affordability, packaging
and document burdens were
flagged by just over 42% of brokers.
Valuation delays, lender service-level
agreements and client reluctance were
also mentioned.
These challenges help explain
why product transfers continue to
lead the way. As creatures of habit,
brokers will stick with what works
unless external switching becomes
genuinely easier.
Final thoughts
Looking ahead, retention via product
transfers could be under real threat,
especially if further affordability
policy changes come in.
If remortgaging becomes even
slightly easier, more brokers will feel
confident exploring external options,
and lenders won’t be able to rely
on simplicity alone to keep clients
from moving.
In the end, whether the rules
change or not, lenders need to
ensure their rates and propositions
remain competitive. Understanding
brokers’ needs and helping them
meet their clients’ expectations will
remain crucial for staying ahead of
the competition. ●
