According to UK remortgage statistics from the ONS, more than 1.4 million households face the prospect of interest rate rises when they renew their fixed-rate mortgages in 2023. More than half (57%) of fixed-rate UK mortgage offers are approaching renewal in 2023, and when taken out, were fixed at interest rates below 2%.
Deals due to mature throughout 2024 will be from two-year fixed-rate offers made in 2022, and five-year fixed-rate deals made in 2019, at a time when mortgage rates were generally much lower than they are expected to be by 2024.
Our research has collated various UK remortgage facts and stats for 2023, by analysing and comparing remortgaging data over time. This allows us to judge the UK remortgage market size, how it has evolved, and make predictions about the potential future of remortgaging in the UK.
ONS figures show that almost six in 10 (57%) of UK mortgages will be up for renewal in this year, with around 353,000 in Q1 2023 alone.
More than three in five (62%) UK mortgages due for renewal as of Q1 2023 were initially fixed at <2%, with almost two in five (37%) between 2-2.5%.
The Office of Budget Responsibility (OBR) has predicted the BoE’s base rate will rise from 3.5% in Q4 2022, to a peak of 4.8% in Q3 2023.
Average monthly remortgage payments on a £100,000 mortgage are expected to rise from £424 to £644 with 6% interest rates.
The 2023 mortgage market value is expected to be worth £285 billion, of which £89 billion will be dedicated to remortgaging, accounting for just under a third (32.4%) of the gross mortgage market value for the year.
In Q3 2022, virtually a quarter (24.9%) of UK mortgages were remortgages.
UK remortgage stats show that in Q1 2023, around 353,000 fixed-rate mortgages will be up for renewal. Based on calculations from the ONS, this figure will rise to a peak of 371,000 in Q2 2023, before decreasing throughout 2023 to around 340,000.
By Q3 2024, forecasts suggest just over 283,000 UK mortgages will need refixing—around 88,000 less than the height of Q2 2023.
Bank of England (BoE) data shows that most mortgages are agreed at a fixed interest rate, with this figure standing at 86% of all UK outstanding mortgages in Q3 2022. This is up from 51% in Q1 2016.
Despite interest rates rising since the beginning of 2022, most fixed rate borrowers have been shielded from these increases, as the majority were fixed at interest rates below 2%, and are still within a fixed-rate period.
According to UK mortgage statistics, more than three in five (62%) mortgages due for renewal were initially fixed at <2% as of Q1 2023, with almost 37% between 2-2.5%.
Throughout 2023-24, the number of mortgages of <2.5% that are up for renewal is expected to drop significantly, from almost 218,000 in Q1 2023 to approximately 176,000 in Q4 2023, and just 17,768 by Q3 2024.
By this stage, the percentage of UK mortgages on initial rates of <2% will represent just 6% of total mortgages up for renewal, whereas more than half (54%) will be mortgages between 2-2.5%.
The biggest jump is expected in UK mortgages with initial rates of over 2.5%. Prior to 2023, there were no mortgages that fell into this category. In Q1 2023, this rose to just under 5,000, representing around 1% of the total UK remortgages required in that quarter. By Q4 2024, this is forecast to exceed 111,000, and represent over one in three (39%) of all UK mortgages up for renewal.
According to a remortgaging report by the BoE, over half (52.3%) of outstanding UK mortgages in Q3 2022 were five-year fixed rate mortgages, with virtually a quarter (24.7%) under a two-year fixed deal.
Mortgage statistics reveal that around 14% were subject to a variable rate, with just under 6% on three or four-year fixed packages, and just 3% on those above five years.
Key trends from BoE data show that:
The percentage of two-year fixed rate UK mortgages have steadily declined since Q2 2018, accounting for just over a third (34%) of all mortgages in that quarter.
UK mortgages on a three or four-year fixed rate have fluctuated in recent years, reaching a peak of 6.7% in the period between Q4 2020 and Q2 2021.
The percentage of five-year fixed rate UK mortgages steadily increased from Q1 2016, going from 15.6% to more than half (52%) of all mortgages within the last six years.
UK mortgages exceeding a five-year rate fluctuated, but remained low, from 2016. Prior to 2020, this figure was consistently below 2%, however, since then it has increased gradually to a peak of 3% in Q3 2022.
Variable rate UK mortgages have declined since 2016, when they accounted for almost half (49.6%) of all UK mortgages. A quarter-on-quarter decrease since saw them reach 14%, accounting for approximately one in seven UK mortgages in 2022.
Historically, homeowners with a mortgage have increasingly tied themselves into long-term deals, at a time when mortgage interest rates were attractively low. When borrowers come to remortgage in 2023, this is likely to be at a higher interest rate than when they took out their original mortgage deal.
The BoE has increased the base rate since the start of 2022 as part of its effort to return inflation to its target of 2%. As of 15 December 2022, the base rate stood at 3.5%, having increased from 0.25% just 12 months earlier. On 2 February 2023, the BoE increased this further to 4%— its highest level for 14 years.
Prior to December 2021, the base rate remained at 0.1% from 31 March 2020, and just 0.75% between January 2019 and February 2020.
As of December 2022, UK variable rate mortgages offered interest rates around 4.41% . Historically, prior to June 2022, interest rates for variable rate mortgages rarely went above 3%. However, since then have steadily increased, exceeding 4% for the first time in recent times during October 2022.
The story for effective UK fixed-rate mortgages is slightly different. From a peak of 2.24% in February 2019, effective interest rates for fixed rate mortgages then declined gradually, reaching a low of 1.91% between March-May 2022. Since then, they have risen, exceeding 2% in October 2022 for the first time since May 2021.
Whether it is a fixed or variable rate mortgage, it’s worth noting that the lowest mortgage rate is not always the cheapest. For example, a £200,000 mortgage in 2018 (on a five-year variable rate of 1.93%) could result in monthly payments of £841. However, in 2020, the base rate fell to 0.1%, resulting in a variable rate of 1.28%. This would mean monthly repayment of just £779—a saving of £62 a month.
As a UK homeowner, you have two options when it comes remortgaging at the end of your existing term:
Switch to a new fixed rate deal (either with your current lender or a new one)
Move onto your lender’s SVR rate (which can often be higher than you were paying before).
As someone looking to remortgage, you’ll have a decision to make. If you choose to stay on the SVR, you’re likely to be faced with higher monthly payments, or certainly experience fluctuating payments as SVR are a type of variable rate. By moving to a new fixed rate deal, you’ll likely be tying yourself into a higher rate, but it will probably be lower than the SVR.
Mortgage interest rate statistics over the past 13 years indicate a degree of volatility, particularly around periods of economic recession and rising inflation. Therefore, by comparing the rates offered for fixed term and variable rate mortgages, you can select a product that is right for you.
|Month||Average of two-year % difference||Average of three-year % difference||Average of five-year % difference||Remortgaging score (/10)|
(Source: Uswitch via BoE)
A recent Uswitch study looked into which months have historically been the best to remortgage in the UK, by analysing average mortgage rates for each month between 2010 and 2022. This was done for three fixed rate packages of 75% LTV including two-year, three-year, and five-year deals. This was then subtracted from the monthly average SVR over the same period, and ranked to generate a remortgage score for each month.
Our data reveals that, historically, the difference between fixed rate and SVR rate deals tends to be less in the first half of the year (January-May), before widening month-on-month throughout the rest of the year to December.
Based on historic mortgage rate data, April is the month that has seen the smallest gap between fixed and SVR mortgage rates, with a 1.823%, 1.365%, and 0.563% difference for two-year, three-year, and five-year mortgage deals, respectively.
The average difference between fixed rate and SVR rate mortgages highlights the following trends:
An increase from 1.876% in June, to over 2% in December for a typical two-year UK mortgage.
A slightly wider gap for three-year mortgage plans, going from 1.386% to 1.627% between June and December respectively.
For five-year rates, the average difference between fixed and SVR rates goes from 0.673% in June to 1% in December.
As of November 2022, a UK two-year fixed rate mortgage offering 95% loan-to-value (LTV) ratio had an average interest rate of 6.57%. This is the highest on record in recent years for this type of mortgage deal, and more than double the rate compared to January 2020.
Between January 2020 and September 2021, interest rates for this type of mortgage generally fluctuated between 3-4%, before dropping below 3% in October 2021 for the first time in recent years.
From the low point of 2.72% in February 2022, interest rates for two-year fixed rate 95% LTV mortgages have steadily increased month-on-month, exceeding 6% for the first time in October 2022.
In November 2022, interest rates for a two-year fixed rate 75% LTV mortgage stood at just under 6%. From January 2020 to February 2022, these rates were comparatively low with minor fluctuations, but never exceeding 2%. Since March 2022, the rates have steadily increased month-by-month, reaching a high of 6% in October 2022.
Interest rates for a UK three-year fixed rate mortgage with 75% LTV stood at 5.66%, as of November 2022. Between January 2020 and February 2022, the interest rates for this type of mortgage rarely went above 2%, with the exception of October 2020 to January 2021 (2.01%-2.10%).
Interest rates for three-year fixed rate 75% LTV mortgages have almost tripled since March 2022, reaching a peak of 5.9% in October 2022.
As of November 2022, data from the Building Societies Association (BSA) puts average interest rates for UK standard variable rate (SVR) mortgages at 5.88%, representing the highest rate for this type of mortgage between 2020-22. Historically, SVR mortgages rates in the UK declined between January 2020 and November 2021 (from 4.27% to 3.59%).
Since December 2021, rates steadily increased from 3.61% up to a peak of 5.88% in November 2022.
Some of the biggest UK mortgage lenders are beginning to tweak their mortgage offers for those remortgaging in 2023, to reflect the changing landscape of interest rates.
On 3 January 2023, Halifax relaunched mortgage tracker rates for the first time in four years, amid a market shift from fixed to variable interest rates. These are targeted specifically at first-time buyers and those remortgaging in 2023. Its two-year tracker rates range from 4.09% to 4.59%, compared with fixed rates of 5.12% to 5.82% for the same term.
With the BoE base rate now at 4%, and fixed rates averaging around 5% (as of January 2023), tracker rates are beginning to look more attractive to those remortgaging in 2023.
Deciding when to remortgage will depend on many variables, such as:
When your mortgage is up for renewal
Potential penalty charges you may face for leaving your mortgage early
The rate of interest available at the time of remortgage
The Office of Budget Responsibility (OBR) has predicted that the BoE’s base rate will rise from 1.6% in Q2 2022, to a peak of 4.8% in Q3 2023. After this point, they are expecting a decrease to 4.5% in Q3 2024, and 4.4% in 2025.
Incidentally, the British Chamber of Commerce (BCC) forecasts the economy will not fully return to growth until Q4 2023. Their forecast for BoE interest rates has changed dramatically since the mini-budget of September 2022, with a predicted rise to 5.25% by Q4 2023.
Home-buying costs go beyond having the initial deposit and covering the monthly repayments, they also include mortgage fees and tax, plus any associated costs with moving home and/or decorating the property. It should also cover any additional costs you may face in the future when it comes to remortgaging. Today’s UK mortgage rates are liable to change over time, thus impacting your monthly repayment costs.
Arrangement fees average between £1,000 and £2,000, but can vary depending on the value of your property and size of loan you wish to borrow. For more information, check out our low-fee mortgage guide to see how you can potentially save money when taking out a mortgage.
In a series of moves, the BoE raised interest rates from 0.25% at the start of 2022 to 4% on 2 February 2023, in a bid to slow down rising inflation nationally. Thanks to a marked rise in interest rates, 2023 may prove to be a challenging year for those looking to apply for a mortgage or remortgage an existing property.
According to the BoE, the average interest rate on a UK two-year fixed rate mortgage in January 2022 was 2.3%, with inflation standing at 5.4%. However, a year later, that same mortgage will be affected by interest rates to the tune of 5.75%, with UK inflation rocketing up to 10.7%.
In November 2022, the effective interest rate on existing UK mortgages with a fixed rate was 2.08%, according to the BoE. This contrasts with an average rate of 4.41% on variable rate mortgages and quoted household interest rates on new fixed rate mortgages of around 6%.
For those looking to remortgage to a fixed rate option, monthly repayments are likely to increase drastically. During a remortgage, if interest rates rise from 2% to 6% on a fixed rate remortgage, homeowners can expect to pay an average of £250 more per month.
UK remortgage stats from the ONS show that for those who borrowed £100,000 to finance a property purchase, their monthly remortgage payments could rise from £424 to £644 if interest rates rose to 6% (compared to a 2% interest rate when their original mortgage deal was taken out).
With the average property price in the UK standing at nearly £300,000, those who have remortgaged onto a 6% fixed rate loan can expect their payments to go from £1,272 per month to £1,933 per month—an increase of £661 on an existing 2% rate.
According to this ONS remortgaging report, those with an outstanding mortgage of £400,000 moving to a 6% interest rate can anticipate a rise in monthly mortgage repayments from £1,695 to £2,577, whereas those with a £500,000 mortgage could face payments of £3,222 per month, up from £2,119 on an existing 2% rate.
The increase in the BoE base rate from 3.5% to 4% on 2 February 2023 means that those on a tracker mortgage will pay around £49 a month more, compared to an increase of £31 a month for those on a SVR mortgage rate. This is on top of increases following previous rate rises.
Compared to December 2021, the average tracker mortgage customer will be paying about £382 more per month more, with variable mortgage holders seeing a monthly increase of around £240.
If a homeowner decides to remortgage before their initial two, five, or 10 year fixed/tracker period is over, then penalties may be applied. Early Repayment Charges (ERCs) are a fee relating to the loss of interest earned by the bank, meaning they don’t lose out on income otherwise received during the fixed/tracker mortgage period.
The size of the ERC payment set by a lender relates to the amount of mortgage the homeowner has left to pay, and how early into the mortgage agreement they decided to leave.
|Year 1 (5%)||£5,000||£10,000||£15,000||£20,000||£25,000|
|Year 2 (4%)||£4,000||£8,000||£12,000||£16,000||£20,000|
|Year 3 (3%)||£3,000||£6,000||£9,000||£12,000||£15,000|
|Year 4 (2%)||£2,000||£4,000||£6,000||£8,000||£10,000|
|Year 5 (1%)||£1,000||£2,000||£3,000||£4,000||£5,000|
(Note: Early Repayment Charges (ERCs) applied during an early remortgage can differ based on a lender’s terms and conditions. The figures above are a general illustration of ERC charges, and do not represent each lender’s specific fees. For a full breakdown of payments, it is advisable to contact your lender or a mortgage broker.)
UK remortgage stats suggest that if a homeowner (with an average UK home value of £300,000) terminates their mortgage agreement early, they’re likely to owe £15,000 as an Early Repayment Charge if they leave the deal within the first year.
However, if the same homeowner waits until the fifth year of their fixed mortgage term, then the repayment is expected to be considerably less. In this instance, around £3,000.
It’s important to know that not all lenders share the same ERC policies, and that seeking financial advice before exiting a mortgage prematurely is the best thing to do. If the homeowner decides instead to remortgage at the end of their fixed term, they will not be liable for any Early Repayment Charges.
The average UK mortgage length is 25-30 years, although some can be shorter. With average mortgage interest rates rising from 1.86% in December 2020 to 5.43% in December 2022, Uswitch analysis has revealed the financial impact of rising rates on UK homeowners. This was achieved using monthly mortgage data between 2020-22, across different loan amounts.
|Loan amount (£)||Term (yrs)||Monthly payment on Dec 2020 rate (1.86%) (£)||Monthly payment on Dec 2022 rate (5.43%) (£)||Monthly price increase (£)|
(Source: Uswitch via BoE and gov.uk)
(Note: All data is based on mortgage figures for a two-year 75% LTV fixed-rate mortgage)
At the height of the pandemic in December 2020, the monthly repayment rate on a £100,000 loan stood at just £363. However, exactly two years later, the monthly repayment figure rose to £563—a leap of £200 per month on mortgage repayments.
With the average UK house price being £296,000, a mortgage for £300,000 (not including deposit) would see monthly payments rise from £1,088 to £1,690—an increase of more than £600. Incidentally, the increase in monthly payments on a £300,000 mortgage between December 2020-22 actually exceeds the full December 2022 repayment rate for a £100,000 mortgage.
For those with a million pound mortgage, monthly repayments of £3,627 in December 2020 rose enormously to £5,634 per month—an increase of over £2,000. This highlights what a marked impact interest rate rises had on UK homeowners in the two-year period between December 2020-22.
BoE forecasts suggest the base rate will rise to 5.25% in Q4 2023, before the market begins to settle in 2024.
UK remortgage cost statistics indicate a clear disparity in average house prices between the UK's four nations. With average monthly mortgage rates increasing from 1.86% to 5.43% between December 2020-22, this had a profound effect upon mortgage repayments.
|Country and government office region||Average house price (£)||Term (yrs)||Monthly payment on Dec 2020 rate (1.86%) (£)||Monthly payment on Dec 2022 rate (5.43%) (£)||Price increase (£)|
|Northern Ireland (Q3 2022)||176,131.00||30||638.75||992.33||353.58|
(Source: Uswitch via BoE and gov.uk)
England has the highest average house price across the four UK regions at £315,073. In December 2020, typical monthly repayments were £1,142.64, however that rose to £1,775.14 in December 2022. London homeowners therefore endured an average monthly payment increase of £632.50.
Conversely, Northern Ireland mortgage holders were least affected by the rise in interest rates. In Q3 2022, the average home in Northern Ireland cost £176,131. Monthly mortgage payments in December 2020 were £638.75, increasing to £992.33 in December 2022. This shows an increase of £353.58 per month, the lowest figure of the UK’s four regions.
Within England, the difference in house prices varies hugely depending on the area. Traditionally, homes in the South of England, alongside the capital London, far outweigh average house prices in other English regions (such as the North East) by over 200%.
|Country and government office region||Price (£)||Term (yrs)||Monthly payment on Dec 2020 rate (1.86%) (£)||Monthly payment on Dec 2022 rate (5.43%) (£)||Price increase (£)|
|East of England||365,144||30||1,324.22||2,057.24||733.02|
|West Midlands Region||256,937||30||931.8||1,447.60||515.8|
|Yorkshire and The Humber||212,329||30||770.03||1,196.27||426.24|
(Source: Uswitch via BoE and gov.uk)
Homeowners living in London faced the highest monthly mortgage payment increase overall between December 2020-22. With the average home in London valued at £542,311, repayments for December 2020 stood at £1,966.73. However, two years later, mortgage repayments rose to £3,055.41, an increase of £1,088.68 per month.
In the West and East Midlands, monthly repayment increases are comparable. With similar house prices (£256,937 and £253,498, respectively), rises in interest rates meant homeowners living in those two regions paid over £500 more per month in December 2022 compared to 2020.
In the West Midlands, monthly payments went from £931.80 to £1,447.60 over the two-year period, an increase of £515.80 per month. In the East Midlands, the 2020 monthly mortgage payment of 919.33 went up to £1,428.22—a total monthly increase of £508.89 per month.
Those living in the North East accrued the smallest monthly mortgage payment increase between 2020-22, thanks primarily to the low average house price of £162,596. In December 2020, monthly mortgage payments were £589.67, increasing to £916.07 in December 2022. This represented an overall increase of £326.40 per month.
Based on UK mortgage figures for a two-year 75% LTV fixed rate mortgage, UK remortgage statistics were calculated by Uswitch to judge the relative increase in mortgage payments for different UK property types between December 2020-22.
|Property type||Average price (£)||Term (yrs)||Monthly payment on Dec 2020 rate (1.86%) (£)||Monthly payment on Dec 2022 rate (5.43%) (£)||Price increase (£)|
|Flats and maisonettes||232,762.00||30||844.13||1,311.39||467.26|
(Source: Uswitch via BoE and gov.uk)
Traditionally detached homes yielded the highest average asking price (£464,745), which also represented the largest increase in monthly mortgage payments. In December 2020, average mortgage payments for a detached property were £1,685.43, whereas in December 2022 this rose to £2,618 per month. An increase of 3.57% in the average interest rate resulted in a monthly payment increase of £932.97.
Interestingly, the average price disparity between UK terraced homes and flats is only £9,771 (£242,533 and £232,762, respectively), meaning the two property types share a similar monthly price increase. For terraced homes, the average monthly payment in December 2020 was £879.57, rising to £1,366.44 in 2022—a monthly payment increase of £486.87.
For UK flats and maisonettes, the average monthly payment was £844.13, increasing to £1,311.39 just two years later—a price increase of £467.26 per month.
According to BSA remortgage statistics, there were 36,226 UK properties that had their remortgage application approved in November 2022. This represented 39% of total mortgages approved for the month, with 52% attributed to house purchases.
Since January 2020, the total number of UK mortgages approved per month has fluctuated between 42,208 in May 2020 to almost 157,000 in March 2022. In terms of remortgaging statistics for these dates, numbers vary between 27,755 and 57,129, respectively. Both of which are the lowest and highest figures recorded since the start of 2020.
Incidentally, as a percentage, 64% of mortgages approved in May 2020 were for remortgaging purposes—the highest percentage figure across all months between 2020-22. The worldwide Covid-19 pandemic led to extremely low interest rates, with almost two-thirds of mortgage applicants seeking to remortgage in that time period.
UK remortgage stats show that, for most months during this time, remortgages generally represented between 30-60% of all UK mortgage approvals. However, between August 2020-July 2021 figures dropped below 30%, reaching a low point in May 2021 when less than a quarter (23.1%) of mortgages for that month were remortgages.
According to BoE remortgaging statistics, there were just over 32,500 remortgages approved in November 2022. This represented around 37% of total mortgages approved for the month, with over half (53%) attributed to those buying a house.
The total number of UK mortgages approved each month has generally decreased over time, but fluctuated between almost 144,000 in January 2021 to around 86,500 in November 2022.
Remortgaging statistics for this period peaked in October 2022 at 51,307, before dropping to just 32,509 in November 2022. Prior to this, between January 2021 and February 2022, remortgage numbers had been on the rise, from just over 33,000 to almost 49,500, respectively.
Incidentally, as a percentage, more than two in five (42%) of mortgages approved in October 2022 were for remortgaging purposes—the highest percentage figure across 2021-22.
According to the BoE’s remortgaging report for 2022, remortgages accounted for less than 30% of all UK mortgages approved between January and July 2021, dropping to as low as 23% at the beginning of the year. From August 2021 onwards, remortgages have always accounted for at least 31% of total UK mortgages for any given month. However since February 2022, this figure has always been above 35%.
According to remortgage statistics from the FCA, more than 320,000 remortgages were issued to UK homeowners in 2021. The vast majority were located in London (42,135) and the South West (40,426), which represented 13.2% and 12.6% of total UK remortgages for the year, respectively.
This was followed by the North West and the South East as the next highest UK regions for remortgaging in 2021, with 36,581 and 34,357 approved remortgages, respectively.
Northern Ireland proved to be the UK region with the least number of remortgages in 2021. Sitting at just 6,817 for the year, this represented 2% of the UK total and around one sixth of London-based remortgages in 2021.
Incidentally, Wales (14,108) and Scotland (21,872) were the next lowest UK regions for remortgages in 2021. Combined, this meant almost 84% of UK remortgages in 2021 were for properties located in England.
Based on recent UK mortgage statistics, the average cost to UK lenders for mortgages has gradually increased year on year, starting at £138 billion in 2011 and rising to a peak of £322 billion pounds as of 2022.
According to UK Finance, the quantity of loans issued for remortgaging has also risen, with the three-year period from 2011 seeing a peak of only £45 billion in 2014—a mere £5 billion more than in 2011. This indicates demand stability within the market.
However, as a percentage breakdown, in 2011 almost a third (32.6%) of loans approved by lenders were designated for remortgaging purposes. Aside from 2018 at 30.5%, UK Finance’s remortgage report indicates that 2011-22 all see figures well below the highs of 32.6%, showing a shift in preference for first-time buyers as opposed to those looking to remortgage their property.
In 2021, during the height of the Covid-19 pandemic, UK remortgage stats show a record low 21% of approved loans were for remortgaged properties. In that year, the UK’s gross mortgage market value stood at £310 billion, whereas the remortgage figure was only at £65 billion—the largest disparity between the two figures since records began.
Prospective forecasting indicates a potential return to 2011 levels of remortgaging in the UK. The 2023 mortgage market value is expected to be worth £285 billion, of which £89 billion will be dedicated to remortgaging—just under a third (32.4%) of the gross mortgage market value for 2023. A similar figure (32%) is forecasted for 2024, with the two-year period indicating an overall reduction in demand for first-time buyers.
UK remortgage lending statistics reveal that gross figures for remortgaging to individuals fluctuated over the past three years. As of November 2022, this total stood at £8.3 billion, having reached a peak of £10.5 billion just a month earlier.
Figures like this had not been experienced in the UK remortgage lending market since January 2020, when secured gross lending for remortgaging reached almost £9.6 billion.
Throughout 2020, and most of 2021, gross lending for UK remortgaging dropped to below £6 billion per month. It remained around this figure until October 2021, when the monthly total exceeded £7 billion for the first time since February 2020.
This remortgage report from the BoE highlights that secured gross lending for remortgaging to individuals in 2022 stayed between £7-9 billion, apart from the aforementioned October value.
In terms of monthly value, UK remortgages were worth nearly £8.8 billion in November 2022, representing almost a third (32%) of the total mortgage market value for that month. This was half the amount generated by house purchases in November 2022.
A breakdown of the monthly UK remortgage value compared to house purchases and other mortgages issued between 2020 and 2022
UK remortgage stats indicate the value of UK remortgages peaked in October 2022 at £11.1 billion, reaching double figures for the first time since January 2020 (almost £10.5 billion). From January 2020, UK remortgages went down in monthly value virtually month-by-month, reaching a low of £5.8 billion in August 2020.
For the following 12 months, these figures from the BSA’s remortgaging report remained around the £6 billion per month mark, until September 2021. Since then, monthly remortgage values increased to figures generally between £8 billion and £9.5 billion, with the minor exception of December 2021 (£6.9 billion).
In terms of total market value, mortgage lending was valued at £85.9 billion in Q3 2022, with only Q2 2021 showing a higher overall value (£89.1 billion).
UK remortgage figures indicate mortgage lending in Q3 2022 was valued at £85.9 billion—£8 billion more than Q2 2022 and £12.5 billion less than Q3 2021—showing a marked uptick in mortgage values across the UK.
Furthermore, in Q3 2022, almost a quarter (24.9%) of all mortgages in the UK were for remortgaging purposes, with less than a quarter (23.3%) of loans dedicated to first-time buyers. Just 12.5% of the mortgages issued in this period were for buy-to-let properties—a 1.1% decrease from Q2 2022 and a 0.6% decrease from the same period the year before.
Just under a third (32.9%) of all mortgages in Q3 2022 were dedicated to people opting for a moving home mortgage. Each period between Q4 2020 to Q3 2021 inclusive showed a considerably higher rate of home movers, with an average of 39.5% (6.6% more than in Q3 2022). This can be attributed to the challenging, financial circumstances in the mortgage market caused by rising inflation and interest rates.
According to the FCA’s remortgage report, interest in buy-to-let properties peaked in Q2 2022, taking a 13.6% share in the overall mortgage market. This is a 2.2% increase from the same period one year earlier. However, Q3 2022 showed buy-to-let mortgages fell to 12.5% of gross mortgage advances—a 1.1% decrease in the space of a quarter.
Looking to move home? If so, porting your mortgage (as opposed to remortgaging) could be an alternative option to consider.
According to a remortgage report by UK Finance, approximately £66 billion of UK housing loans were attributed to homeowners remortgaging in 2020. This accounted for more than a quarter (28%) of UK housing loans for that year.
UK remortgage figures suggest this could rise to £69 billion in 2022, and £93 billion in 2023, at which point it could account for almost a third (31%) of UK housing loans for the year.
Incidentally, the value of buy-to-let remortgages in 2020 stood at £27 billion (almost 12% of all UK housing loans), and remained constant in 2022. In 2023, it’s forecast that buy-to-let remortgages will be worth an extra £6 billion compared to 2022, yet only 11% of total UK housing loans for the year.
A remortgaging report by UK Finance shows there were over 187,000 new mortgages to borrowers over 55 years old in 2021, with total lending for the year at £28.1 billion. Compared to 2020, this is an 11% increase in total mortgage volume, and a 22% increase in the value of mortgage lending to the over 55s. This represents the highest amount of lending to borrowers over 55 since 2014, when records began.
|2019||2020||2021||Annual change % (2020-21)|
|Total remortgages to those aged 55+||90,130||82,060||77,960||-4.30%|
(Source: UK Finance)
According to remortgage statistics from UK Finance, there were almost 78,000 remortgages in 2021 to people aged 55 and above. This represented a 4.3% drop in remortgages for the over 55s since 2020, and more than 13% decrease from 2019 figures.
Later life remortgage statistics indicate that buy-to-let purchase and remortgage purposes are the most common product selected by the over 55s when it comes to mortgages for this age group.
As of Q4 2021, buy-to-let purchases and remortgaging constituted almost 14,000 of all mortgages for the over 55s—accounting for almost a third (31%) of the total for that quarter. Consequently, 9,880 were for homeowner remortgages, representing just under a quarter (23%).
Since 2019, the number of homeowner remortgages for over 55s decreased but has remained fairly consistent since Q2 2020, with minor fluctuations between 8,800 and 9,800 per quarter.
Conversely, the remortgage report by UK Finance shows buy-to-let purchase and remortgage product sales significantly fluctuated quarter-on-quarter, rising to a peak of 15,890 in Q1 2020, but dropping to a low of 11,350 the following quarter.
When broken down by age group, later life remortgage statistics from UK Finance reveal that the vast majority of remortgages to the over 55s are for those aged 65-74 years old.
In Q4 2021, over 128,000 remortgages were approved for this age group, representing 49% of the total (234,420). By contrast, over 100,000 were for 55-64 year olds (43%), and just 5,000 for those aged 75 and above.
UK remortgage figures show that since Q4 2019, remortgages for 65-74 year olds has remained the dominant group for the over 55s, peaking at over 160,000 in Q2 2021 and dropping to 80,320 in Q2 2020. These quarters also saw the highest and lowest number of remortgages for those aged 55-64, with almost 123,700 and 72,000, respectively.
Remortgaging for the over 75s remained low between 2020-21, dipping at 3,560 in Q2 2020, yet reaching a high of 6,680 just 12 months later.
Later life remortgage statistics for residential mortgages indicate an overall decline in popularity for remortgaging between 2019-21. In 2019, more than 45,000 residential remortgages were issued for the over 55s, but this number has dropped year-on-year to 36,570 in 2021 (a 6.8% drop since 2020).
|Type of residential remortgage product||2019||2020||2021||Annual change % (2020-21)|
|Residential remortgage - equity withdrawn||25,120||22,350||21,520||-3.70%|
|Residential remortgage - Simple refinance||20,140||16,900||15,070||-10.80%|
|Total residential remortgages||45,260||39,250||36,570||-6.80%|
(Source: UK Finance)
Simple refinance residential remortgages saw the biggest decrease (-10.8%) between 2020-21, when just 15,070 were issued—more than 5,000 fewer compared to 2019.
Equity withdrawal residential mortgages experienced a relatively small decrease by comparison between 2020-21 (-3.7%). However, these figures dropped from 25,120 in 2019 to 21,520 in 2021 (a 14.3% decrease within this three-year period).
Later life remortgage statistics for buy-to-let remortgages have been on an overall decline since 2019, going from 44,870 down to 41,390 in 2021 (a decrease of 7.8%).
|Type of buy-to-let remortgage product||2019||2020||2021||Annual change % (2020-21)|
|Buy-to-let remortgage - equity withdrawn||18,090||15,640||16,570||0.059|
|Buy-to-let remortgage - Simple refinance||26,780||27,170||24,820||-8.60%|
|Total buy-to-let remortgages||44,870||42,810||41,390||-3.30%|
(Source: UK Finance)
Simple refinancing buy-to-let remortgages followed a similar trend over this period, falling from 26,780 in 2019 down to 24,820 in 2021 (a drop of 7.3%). Between 2019-20, there was a small increase (almost 400) in the number of simple refinance buy-to-let remortgages for the over 55s. However, this was short-lived and dropped by almost 2,400 the following year (-8.6%).
This remortgage report indicates that equity withdrawn buy-to-let remortgages for the over 55s has bucked the trend in recent years, seeing a rise of 5.9% between 2020-21. In 2021, 16,570 equity withdrawn buy-to-let remortgages were approved, however this is 8.4% less than respective figures for 2019.
According to UK buy-to-let statistics, £8.5 billion worth of properties were bought by UK landlords in 2022. This represented nearly 14% of the UK mortgage market for the year and equated to more than 211,000 properties.
There are many advantages of buy-to-let mortgages, including:
Lower monthly repayments – Most buy-to-let mortgages are interest-only mortgages, allowing for a better monthly rental income.
Growth in property value - Historically, UK properties have a habit of increasing in value, rather than decreasing. This is of benefit should you want to pay your mortgage off early and/or sell the property at a later stage.
Source of income - Buy-to-let properties are a good opportunity to generate some additional monthly earnings and supplement any other income streams you may have.
An opportunity to build a portfolio of properties – The average UK landlord owns eight properties, generating an average gross annual rental income of around £61,000 per property.
Whether it is a consumer buy-to-let mortgage or a traditional one, most lenders will offer a maximum of 75% loan-to-value (LTV), meaning you can borrow 75% of the property’s current cost.
Looking for ways to add value to your home? Check out our guide on the steps you can take to help ensure your property achieves its maximum potential value.
UK remortgage figures show, in Q2 2022, 84% of mortgage transactions for HMO purchases were for remortgages, representing the highest share of all property types in this study. Conversely, just 16% of buy-to-let loans represented HMO purchases. Similarly, multi-unit freehold blocks (MUFB) have a high remortgage rate of 82%, with purchase rate of only 18%.
The buy-to-let remortgage of flats in Q2 2022 represents the smallest comparative difference between all UK property types, with 44% of flats purchased and 56% of flats remortgaged. However, the overall trend moves towards remortgaging, with holiday let mortgages showing a 63% remortgage rate as opposed to a 38% purchase rate, similarly with vanilla buy-to-lets (36% and 64%, respectively).
For those looking to purchase a property with the intent of renting it out, check out our guide on how to become a buy-to-let landlord.
According to remortgage statistics, 57% of UK homeowners will be coming to the end of their fixed rate mortgage period in 2023, accounting for 1.4 million people nationally.
Rising interest rates means remortgaging is likely to be more expensive than ever for households, applying further pressure to families and homeowners struggling during the UK cost of living crisis.
Data from the ONS reveals that homeowners in the lowest 10% of earners across the UK will be hit hardest by mortgage interest rate rises. A survey taken in Q4 2021 highlights how the lowest-income decile already spends 24% of their gross household income on mortgage payments, a figure that may increase in 2023 due to the rise in interest rates.
As household income increases, the percentage of total expenditure on mortgages generally drops, from 24% for the lowest income decile to 15% for the UK’s highest earners.
The overall average net spend per household on mortgage repayments is 16%, a full 8% less than those that earn the least. This demonstrates how the increased interest rates during 2023’s cost of living crisis will disproportionately affect homeowners with the lowest income, particularly those looking to remortgage.
A 2023 ONS survey revealed that, whilst inflation and interest rates remain high, less than one in three (29%) adults currently paying rent or a mortgage reported an increase in their payments between 21 December 2022 and 8 January 2023.
In addition, almost one in three (29%) of people paying rent or a mortgage admitted they’re finding it very or somewhat difficult to keep up with these payments. While that figure is high, the beginning of December 2022 generated the same results (29%), meaning that figure is currently stable.
Unfortunately, 2% of the respondents indicated they were behind on making rent or mortgage payments. The upside to this statistic is that, for the period before this survey, 4% were reporting the same struggles, indicating a 50% overall reduction in people struggling to make rent or mortgage payments. This is supported by data from the English Housing Survey, which showed that mortgage arrears across England have remained at or below 2% in the last 10 years.
Finally, in the period of 7-18 December 2022, less than half (45%) of UK adults with mortgages stated they were somewhat or very worried about the changes in mortgage interest rates during 2023.
As a general rule, you can begin the process of remortgaging up to six months before your current deal ends. The majority of mortgage offers are valid between three and six months from the date they are issued.
Yes, you can remortgage early on a fixed rate mortgage deal, but you will likely have to pay ERCS to leave the deal early. If you fail to find a better deal before the end of your current term, you may be reverted to your lender’s standard variable rate (SVR).
If you’re a UK homeowner and your current mortgage deal is coming to an end in 2023, now might be a good time to think about securing a new remortgage deal. Mortgage rates peaked in October 2022 at 6.55% and have fallen in recent months, with the average two-year fixed rate just under 5.6%. The BoE is likely to increase the basic interest rate even further in 2023, so securing a mortgage deal now might still be a better option than leaving it later.
If you own a property outright and wish to remortgage, you should be able to do so with minimal fuss. This is because the risk to lenders is very small, and means you can remortgage to release equity by borrowing against your house (as collateral). You’ll still be subjected to eligibility and affordability checks by the lender, to ensure you’re in a position to repay the mortgage.
In the UK, the remortgage process can generally take anything between four to eight weeks after your application is submitted. Completions can take as little as 24 hours, whereas the time it takes to get a mortgage approved can be up to two weeks.
Technically, you can remortgage at any time. However, if you choose to remortgage more than six months before the end of your fixed-rate deal, then you may incur a penalty called an early repayment charge (sometimes abbreviated to ERC).
Remortgaging can allow you to reduce the size of your repayments by potentially getting a cheaper rate. There might be a better deal available now compared to when you took out the mortgage, however, you may face early repayment or exit fees as a result. This should be considered against any potential savings you would receive being on a new rate.
Yes, it’s possible to remortgage your house to buy another property. This can be an ideal opportunity to release some equity and use this as a deposit towards another purchase. This would be ideal for anyone looking at a second home or a buy-to-let property.
Yes, it’s entirely possible to remortgage your property in order to pay off debts. This will allow you to release equity in a lump sum, which can be used to repay any outstanding money owed. It could also help reduce your monthly mortgage payments. However, before choosing to remortgage, we would advise seeking independent, financial advice, to ensure you are in a financial position to do so.
According to the FCA, the value of outstanding UK residential mortgages was £1.6 trillion at the end of Q3 2022. This was 4.1% higher than the previous year.
Mortgage rates are expected to rise throughout 2023 in the UK. The Office for Budget Responsibility (OBR), is forecasting that the BoE’s base rate will rise to 4.8% in Q3 2023 and possibly 5.2% in Q4 2023. Should this happen, mortgage rates for a two-year fixed rate deal could easily exceed 5.4%.
There is some talk that mortgage rates could exceed 8% by 2025. However, the BoE projects that the UK base rate will fall to 4.4% by 2025, meaning UK mortgage rates should start to decrease in 2025 compared to 2023.
According to the Equity Release Council, more than 47,300 new or returning customers used equity release products in the first half of 2022—a 32% increase year-on-year. It’s expected that by the end of 2022, over 100,000 people would have triggered an equity release on their property.
Your mortgage size will depend on your income and amount of deposit. Mortgage lenders will typically offer you a mortgage that is between 4-4.5 times your salary per person. However, remortgaging works slightly differently and the level of equity you have in your home will also be a factor. Each lender will have their own criteria and method for assessing your affordability.
There were 1.185 million UK mortgages up for refixing in 2022. While it’s not known exactly how many remortgage applications were submitted throughout the year, there were 731,497 remortgages approved by UK lenders between January-November 2022, according to the BSA. This means there were over 454,000 remortgages that were either declined or not reapplied for.
Yes, you can fail a remortgage application. If the value of your property decreases over time, then when it comes to switching your mortgage provider, you could be assessed on a higher loan-to-value (LTV) ratio, which can reduce the chance of a successful remortgage application.
It’s also possible to fail a remortgage application based on an administrative error (such as incorrect information inputted into the system), or if your credit score or income has decreased since you took out your existing mortgage deal. Needless to say, bad credit mortgages are available on the market if you shop around.
Remortgaging is an opportunity to release some of the equity from your property. This is achieved by borrowing more money against your home, so you’re likely to see a subsequent rise in monthly repayments and a reduction in the equity you hold as a result.
A buy-to-let mortgage is a loan offered by a lender, with the intention for a landlord to purchase property explicitly to rent to third parties.
A fixed rate mortgage is a deal offered by the lender where the interest rate will be locked in for a fixed period of time. This is often 2 years or 5 years, but can be 10 years or longer.
Interest rates are the proportion of a loan that the lender will apply on top of the principal amount.
The Loan to Value (LTV) is the amount you are borrowing compared to the total current value of the home. This can change over time as your property value changes and as you repay your loan.
At the beginning of a mortgage, if a home is valued at £300,000, and a potential buyer places £30,000 as a deposit. The mortgage is then £270,000 from the lender, making the LTV of the property 90%, with the deposit accounting for 10%.
A mortgage is a loan issued by a lender, such as a bank, for the intention of purchasing property. The lender and the recipient will set terms, such as the type of mortgage, the repayment schedule and the level of interest applied.
Mortgage equity withdrawal (MEW) is, simply, borrowing against an owned property. To do this, a homeowner will need to ensure their property is worth more than the remaining mortgage on the property. A property owner can take advantage of a MEW if the value of their property has increased since the first mortgage.
Put simply, mortgage expenditure is how much a homeowner spends on their mortgage, in addition to the interest rate applied to it. The answer can be given as either a percentage or a monetary figure, for example “Person spends £1,197 per month on their mortgage, 20% of their overall monthly income.”
Mortgage lenders are the institution that offers prospective homeowners a mortgage. Traditionally a bank, mortgage lenders will offer the full home sum to loanee’s, alongside applying interest rates and administrating the repayment schedule.
This is where the conditions of the mortgage change, and the homeowner decides to transfer their mortgage on the same property to a different lender and/or mortgage product. This can be to take advantage of another lender’s interest rates, to borrow money against the property, or when coming to the end of an existing deal.
A simple refinance is where a homeowner seeks to change the terms of their mortgage, without seeking to release equity, borrowing any more money, or getting a second home mortgage. This can be to extend their repayment schedule from the industry-standard 25 years to a longer 30 year period, spreading the payments and reducing monthly costs.
Each lender has a standard variable rate mortgage, which they set and change at their own will. The interest rate applied can fluctuate at any time. You will be transferred onto an SVR mortgage rate when your current mortgage deal ends.
Total gross amount simply means the quantity of something before any deductions, such as taxes on an income.
A vanilla buy-to-let mortgage is simply where a prospective landlord applies to a lender for funds to purchase a home, with the expressed intent of renting the property to tenants for a profit. A vanilla buy-to-let excludes subsections such as HMO’s, holiday lets, multi-unit freehold blocks, and so on.
A variable rate mortgage is a type of mortgage in which interest rates can fluctuate, meaning monthly payments can go up or down.
For further information on terms associated with remortgages and mortgages in general, check out our guide to mortgage terminology.
UK remortgage statistics sources & methodology