There were 311,400 homeowners who switched product with their existing provider in the third quarter of 2019, a year-on-year increase of 7.5%, new UK Finance data revealed.
The new figures on mortgage product transfers for the third quarter of 2019 showed that of these, 175,900 were on an advised basis, while 135,500 were on an execution-only basis.
By value, the figures revealed internal product switching represented £43.5bn of mortgage borrowing, a year-on-year increase of 12.8% – with £25.4bn on an advised basis, and £18.1bn on an execution-only basis.
UK Finance said the activity for the quarter does not feature in mortgage market data for gross lending or remortgaging, which involves switching to an alternate provider.
Commenting on the latest figures, TMA director of mortgage services, David Copland, said: “It is disconcerting to see that 135,500 of product transfers were on an execution-only basis last quarter.
“There is a danger here that customers could end up with the wrong product for their circumstances, and this could lead to severe financial consequences for them in the future.
“What’s more is that some may be better off remortgaging – something which they may not realise without getting guidance from an adviser. It is a broker’s duty to be checking in with clients regularly and reviewing their circumstances throughout their mortgage term.”
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