This was a relatively subdued year for remortgaging, which fell by 10% to £59 billion in 2024. Internal product transfers (getting a different deal with the same lender) also fell by 7%. This was partially due to less customers on fixed rate mortgages coming to the end of their deal periods, as well as continuing financial restraints. However, by mid-2024 we were seeing an increase in lending for buyers due to wage growth and lower mortgage rate offers.
What might remortgaging look like in 2025?
Remorgaging is when you move your mortgage to a new lender while staying at the same property. UK Finance estimates that external remortgages will be up 30% from 2024, due to costs starting to ease, mortgages becoming gradually more affordable, and the market slowly starting to pick up. UK Finance is predicting steady growth in both house purchase and remortgaging. This may lead to a rise in remortgaging for both residents and buy-to-lets as things become cheaper.
When you first signed up for your mortgage, you may have gotten a great deal for the time. Now, however, things might be different and you may be able to get a better deal with another lender. When your introductory deal ends, you’re usually moved onto your lender's standard variable rate, which is often higher than deals you might get with another company.
With more fixed rate deals becoming available in 2025, it’s predicted that refinancing will grow. Over a quarter of borrowers on fixed deal mortgages are coming up for renewal and may be tempted to look for a better deal.
Public sector workers who are coming to the end of their current contract could find a better deal with a new lender. Public sector workers may be able to get a discount or access more flexibility, and it doesn’t hurt to shop around and see if you can save some money by remortgaging. If you’re thinking of remortgaging, make sure you know if there are any additional costs - like administration and legal - and whether your new lender will cover them.
Public sector wages
Labour caused a stir in December 2024 when they said public sector workers would only get a pay rise above inflation if productivity improved. Downing Street has proposed a 2.8% pay increase for NHS workers, teachers, and civil servants, while inflation is predicted to average at 2.6% in 2025. This lack of significant pay rise may prompt some public sector workers to look at areas they can cut costs, and if your fixed rate mortgage is coming to an end, it may be time to see if you can get better interest rates elsewhere.
Interested in remortgaging? Speak to our team for specialist advice.
