The opinions expressed here are those of the authors. They do not necessarily reflect the views or positions of UK Finance or its members.

Figures from Legal & General highlight the trend, showing that in Q1 2025 broker searches for remortgage products jumped by 34 per cent compared with Q4 2024.

The changes to stamp duty in April fuelled a flurry of transactions in March, and market watchers anticipate another spike in September. Several market factors suggest the strong activity isn’t going anywhere just yet.

Competition among lenders is intensifying, particularly at the lower loan-to-value tiers where rates have dipped under 4 per cent for months. This illustrates the battle to hold on to borrowers approaching the end of their fixed terms.

While the summer slowdown is typical for the season, the outlook for autumn is very different. A significant wave of fixed-rate mortgages will mature in the coming months – UK Finance estimates 1.8 million in 2025 alone, up from 1.6 million last year. The volume rises further to 1.9 million in 2026.

Although some borrowers are still exiting ultra-low five-year fixes, many refinancing households in the next year and a half will actually see monthly payments fall. Compare the Market’s research – drawing on FCA and Bank of England data – suggests roughly 940,000 homeowners will roll off two-year fixes in 2025.

Moneyfacts data at the start of July confirmed that average fixed rates have dropped for the fifth month in a row. Two-year fixes now average 5.09 per cent, the lowest since September 2022, while five-year fixes have fallen to 5.08 per cent, a level not seen since October 2024. With lenders competing for the most attractive customers, further reductions seem likely.

However, product transfers – which have been popular with borrowers wishing to sidestep stringent affordability checks – have seen a decline this year. That’s a problem for lenders, as remortgage origination carries higher underwriting costs, putting additional pressure on margins. The combination of sharper rates and customer retention tactics has encouraged more borrowers to shop around.

Until recently, moving to a new lender typically meant undergoing a full affordability assessment, which deterred many. But in July, the FCA introduced the first of several expected reforms aimed at simplifying the process.

The regulator has scrapped the requirement for a full affordability review when a borrower shortens their mortgage term. It has also updated its modified affordability assessment so that a borrower can move to a more affordable deal with a new lender without undergoing the full process – even if the new product is from a different provider – as long as it’s cheaper than their current arrangement or any retention offer from their existing lender.

Although these changes are optional for lenders, the expectation is that more will apply them, particularly for low-LTV customers with small balances. This could open the door for brokers to place more business with alternative lenders, posing a challenge for providers who have relied on ease of retention to protect their loan books.

In the emerging landscape, borrowers in strong positions won’t be forced to choose between a smooth process and a better deal – they’ll expect both. Price competition will tighten further, and service quality will become a key differentiator.

For lenders unable to match the cheapest market rates, the emphasis will shift to making the remortgage process as frictionless as possible. That’s true for direct-to-consumer channels and even more critical for intermediary-led business. In short: for many lenders, streamlining the remortgage journey could be the decisive factor in winning – and keeping – customers.