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UKF releases Q3 product transfer data and revises earlier figures

UK Finance has released product transfer data for Q3, along with revised figures for Q1 and Q2.

The trade body’s latest data found that 291,900 homeowners switched product with their existing provider in the third quarter of 2018, representing £38.7bn of mortgage debt refinanced internally.

Of these product transfers, 156,900 were conducted on an advised basis, worth £21.4bn, compared to 135,00, worth £17.3bn that were execution-only.

The figures do not feature in any market data on remortgaging, or other published gross mortgage lending data.

UK Finance director of mortgages Jackie Bennett says: “These latest figures show that customer engagement remains high and the majority of mortgage customers switch to a new deal shortly after their previous deal expires.

“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.”

Product transfer figures for Q1 and Q2 of 2018 have also been revised, following a member data resubmission due to a reporting error.

Data for Q1 was originally found to total £53.7bn; following the amendment the figure is now £38.8bn, while for Q2 the figure has been revised down to £36bn of mortgage debt refinanced internally from the original figure of £53.8bn.

Bennett says: “Product transfers is a new data set which UK Finance has reported on from beginning of 2018. This latest release for Q3 2018 includes material revisions to the historic data we published previously for Q1 and Q2, due to member data resubmissions, made following the identification of a reporting error which has now been rectified.

“Despite the downwards revisions, these figures show that customer engagement remains high and the majority of mortgage customers switch to a new deal shortly after their previous deal expires.”

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