Homeowners re-mortgaging with same lender is 'common'

Many homeowners re-mortgaging their properties ignore the new re-mortgaging deals flooding the market and remain with their existing lender, the Council of Mortgage Lenders (CML) has remarked.

Re-financing with the same lender is "pretty common" among homeowners, commented Sue Anderson, head of member and external relations.

Continuing to "a follow-on deal" is a "sufficiently attractive option" for many to discard thoughts of shopping around for an alternative provider, she added, as "higher arrangement fees for mortgages" deter some borrowers from migrating.

Nevertheless, Ms Anderson dismissed the idea that loyalty based on a history with one provider could discourage mortgage customers from moving, noting that a sense of allegiance was probably "not a primary motivator for many customers these days".

Instead, savvy homeowners tended to compare the financial incentives offered by different mortgage firms to inform their decision.

This week, figures from the British Bankers' Association showed that an acceleration in the number of people remortgaging their homes buoyed mortgage growth in July.

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