Remortgaging set to regain ground as affordability improves and fixed-rate cliff edge looms

28 January 2026

• Remortgaging volumes to rise to £103bn in 2026 and £110bn in 2027, up from £93bn in 2025, as improved affordability enables more borrowers to switch lender
• Product transfer volumes to remain elevated at c.£260bn in 2026, but growth forecast to slow sharply as remortgaging outpaces transfers

28th January 2026, London

Recent forecasts in IMLA’s New Normal 2026/27 report indicate that remortgaging is set to reassert itself as the dominant refinancing route over the next two years, as improving affordability and easing market conditions expand borrowers’ options beyond simple product transfers.

While product transfers surged in recent years as interest rates rose sharply and affordability became more constrained, IMLA expects that balance to shift as borrowers increasingly regain the ability to switch lender. Remortgaging is forecast to grow to £103bn in 2026 and £110bn in 2027, while product transfer growth is expected to slow following record volumes in 2025.

This change reflects a market that is gradually moving out of the most restrictive phase of the interest rate cycle. As mortgage rates ease, a growing number of borrowers are once again able to meet affordability criteria when refinancing, reducing the need to default to product transfers at the end of a fixed term. At the same time, ongoing lender innovation and a more proportionate regulatory environment are expanding the range of options available to borrowers approaching the end of fixed-rate deals.

With an estimated 1.8 million borrowers due to roll off fixed rates in 2026 alone, IMLA believes the coming period will mark a return to more active refinancing decisions, rather than the default reliance on product transfers seen in recent years. As affordability pressures ease, borrowers are more likely to benefit from reviewing the whole market rather than limiting themselves to their existing lender’s retention products.

Intermediaries are expected to remain central to this shift. The broker channel continues to account for close to nine in ten mortgage transactions, reflecting the growing value of professional advice in a market where borrowers’ needs and circumstances are increasingly diverse and can change significantly over time.

Kate Davies, executive director of IMLA, said:

“The re-emergence of remortgaging is a healthy development for the market. While product transfers have played an important role during a period of stretched affordability, they may not always provide the best long-term answer for borrowers whose circumstances have evolved.

“For many people, a remortgage is a natural opportunity to take stock and reassess their wider financial position. Income, outgoings, family circumstances and future plans can all change in nuanced ways over the life of a mortgage, and it makes sense for those changes to be reflected in the advice and solutions borrowers receive.

“With affordability improving and lenders continuing to innovate within a robust regulatory framework, many borrowers now stand to benefit from having a professional broker scour the whole market for the most suitable mortgage solution, rather than simply defaulting to another product with their current lender.”