UK Finance has published refinancing figures for the first time, revealing that £53.7bn of mortgage debt was refinanced internally in the first three months of the year.
The research also shows that of the 390,200 homeowners who switched their mortgage product, 203,200 of these (with a total value of £29.5bn) took advice. The remaining 187,000 transfers (£24.2bn) were execution-only.
The trade body states that it has released this data following interest around customer retention garnered from the findings of the FCA’s much-discussed Mortgage Market Study that shows the mortgage market is highly competitive in this area.
It promises that future data will be published quarterly.
UK Finance director of mortgages Jackie Bennett comments: “These figures echo the FCA’s findings in its interim Mortgages Market Study: customer engagement is high and the majority of mortgage customers switch to a new deal shortly after their previous deal expires. Our data also supports the FCA’s observation that most borrowers choose to remain with their current lender when they switch product.
“It’s a positive outcome for consumers that they can make these transactions in a wide variety of ways to suit their needs. 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.”