Industry body projects improved affordability will push more borrowers to switch lenders
Remortgaging is expected to reclaim its position as the main form of refinancing over the next two years, according to projections in the Intermediary Mortgage Lenders Association’s (IMLA) New Normal 2026/27 report.
The trade body anticipates that, as affordability improves and market conditions stabilise, more borrowers will once again be able to switch lender rather than rely on simple product transfers. Remortgage lending is forecast to reach £103 billion in 2026 and £110 billion in 2027, while growth in product transfers is projected to slow after record volumes in 2025.
IMLA argues that this shift signals a gradual move away from the most restrictive stage of the current interest rate cycle. As mortgage rates ease, a larger share of customers coming to the end of fixed-rate periods are expected to pass lenders’ affordability tests, reducing the tendency to remain with the existing lender by default.
The report also points to product development and regulatory evolution as supporting factors. Lender innovation and what IMLA describes as a more proportionate regulatory backdrop are together increasing the range of choices available to borrowers reaching the end of fixed-rate deals.
With about 1.8 million borrowers expected to come off fixed rates in 2026 alone, IMLA suggests that refinancing behaviour is likely to become more active, with greater emphasis on assessing the wider market rather than relying on retention ranges.
Intermediaries are expected to remain central to this pattern. The broker channel continues to be involved in close to nine in 10 mortgage transactions, underlining the role of advice in a market where customer profiles and needs are becoming more varied and can alter significantly over time.
“The re-emergence of remortgaging is a healthy development for the market,” said Kate Davies (pictured right), executive director at IMLA. “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.”
Want to be regularly updated with mortgage news and features? Get exclusive interviews, breaking news, and industry events in your inbox – subscribe to our FREE daily newsletter. You can also follow us on Facebook, X (formerly Twitter), and LinkedIn.
