Remortgaging – seen as a route by some landlords to allow them to expand portfolios – is likely to boom in the next two years.
That’s the view of the Intermediary Mortgage Lenders Association (IMLA) which says remortgaging will become easier in the near term as affordability improves and market conditions relax.
Remortgaging is forecast to grow to £103 billion in 2026 and £110 billion in 2027.
IMLA says that 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.
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.
Executive director Kate Davies says: “The re-emergence of remortgaging is a healthy development for the market.
“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.”
This article is taken from Landlord Today