100,000 more remortgages due in 2024 than 2023
By Paula Mercer, Head of Sales, LendInvest
It’s now a trend to discuss remortgage and product transfer potential this year. A staggering 1.5 million homeowners will reach the end of their fixed-term rate by the end of 2024, that’s 100,00 more than 2023*1.
According to the Financial Conduct Authority (FCA), in 2021, 13% of property owners were on reversion rates*1. This calculates at an approximate 1.3 million remortgages to transact this year alone.
In the last couple of months we’ve seen:
- Bank of England Base Rate be maintained rather than risen
- Inflation and UK Money Markets Stabilise
- SWAP rates fall.
This has resulted in widespread lower interest rates for mortgages, in the first weeks of the year; but after increased numbers of homeowners sat on their reversion rate - 13% in 2021*1 - and as people come to remortgage in an environment alien to their old one, what do brokers need to do to ensure the best outcome for their clients?
What can lenders do to best accommodate property owners remortgaging in 2024?
We’re expecting the specialist lending market to grow throughout 2024, as brokers are required to adapt to remortgaging customers under different circumstances than the traditional means.
An example of this - the increase in customers with second jobs. In November, we wrote about some UK homeowners looking for an alternative way of earning to best position themselves in the current economic climate - Qualtrics’ survey found that a third (34%) of UK workers have looked for second jobs to fight the rising cost-of-living.
Over recent years we have seen a significant uplift in lenders meeting the needs of customers through criteria enhancements, and 2024 does not fit outside of the growing need for adapting lending.
Discover how we may be able to help your customers with their remortgage. Find our residential, bridging and Buy-to-Let products, all in one place via the LendInvest Mortgages Portal.
*1https://www.fca.org.uk/publication/research/switching-in-the-mortgage-market-update-august-2022.pdf
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LendInvest Mortgages and LI Mortgages are registered trading names of LendInvest Loans Limited. LendInvest Loans Limited is authorised and regulated by the Financial Conduct Authority (FRN:737073). LendInvest Loans Limited is a company registered in England & Wales (Company No. 09971600) and is a wholly owned subsidiary of LendInvest plc.
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