The remortgage market is surging in 2025 — and competition between lenders has never been tougher.
According to Legal & General, broker searches for remortgage products jumped by 34% in Q1 2025 compared to the previous quarter. With stamp duty changes driving additional activity in March and another spike expected in September, the momentum is set to continue well into next year.
But in a market where around 1.8 million fixed-rate mortgages are due to mature in 2025 (rising to 1.9 million in 2026), it’s no longer enough for lenders to compete on price alone. Service and simplicity are becoming just as important.
Rates are falling — but retention is getting harder
Mortgage rates have been edging down throughout 2025, with Moneyfacts reporting average two- and five-year fixes dropping to their lowest levels since 2022. Many borrowers refinancing this year will see their monthly repayments fall — particularly those coming off two-year deals.
But this positive backdrop brings new challenges for lenders. Product transfer volumes are falling, and remortgage origination — which requires more underwriting and admin — is eating into margins. Retaining customers is proving costly, while brokers are increasingly willing to move clients to alternative lenders offering sharper rates or smoother processes.
FCA changes are reshaping the remortgage process
In July, the FCA introduced a set of changes aimed at making remortgaging easier for consumers. These included:
- Removing the requirement for a full affordability check when borrowers reduce theirmortgage term.
- Updating the modified affordability assessment so that switching to a new lender is allowed, provided the deal is more affordable than the borrower’s current product.
While not mandatory, these changes are expected to encourage more lenders to waive full reunderwrites for lower LTV borrowers — particularly where balances are smaller. This creates a more level playing field, and significantly reduces the “hassle factor” that previously kept many borrowers tied to their existing lender.
Why hassle-free remortgaging is now critical
For years, many borrowers were happy to accept a slightly higher rate in exchange for avoiding the admin of a full affordability check. That trade-off is disappearing. Borrowers now expect pricing to be competitive and the process to be straightforward.
For lenders without the funding power of the high street, this means one thing: the experience matters more than ever. Making the remortgage journey as quick, simple, and stress-free as possible will be the deciding factor in customer retention.
And for brokers — who continue to originate the majority of mortgages — this is equally critical. Streamlined remortgage technology doesn’t just improve customer outcomes; it also saves advisers time on repetitive admin, reduces compliance headaches, and keeps them focused on client relationships.
The takeaway
The remortgage boom of 2025 represents a huge opportunity — but also a serious challenge. With rate competition intensifying and regulatory changes levelling the playing field, lenders can no longer rely solely on price to keep customers.
The winners in this new landscape will be those who can pair competitive products with a seamless, hassle-free remortgage experience. For both lenders and brokers, that’s where real retention lies.
Hamza Behzad, Business Development Director
