The number of borrowers who have been able to switch to another lender rather than take a product transfer has jumped following FCA changes to affordability rules and they are paying less as a result, new research shows.

Last July, the FCA significantly expanded lenders’ scope to use modified affordability assessments (MAAs) to enable more borrowers to remortgage onto cheaper deals.

Previously, many borrowers were forced to stay with the same lender and take a product transfer because they would not pass affordability tests if they tried to move their mortgage.

New research from Stonebridge has revealed that the rules are having a significant impact. 

The number of times modified assessments were used for product transfers in the first quarter of 2026 plummeted from 550 to 100 — a year-on-year decline of 82%.

This was despite a 30% annual jump in MAAs overall to 5,828 in Q1.

The share of borrowers who were able to move to a new lender with the help of an MAAs rose from 88% to 98%.

Those remortgaging with new lenders are also borrowing more at lower rates, the data released to Stonebridge under a Freedom of Information request shows. 

At 3.92%, interest rates on external MAA remortgages were 0.73 percentage points lower in Q1, while the average loan amount was 141% greater at £194,999. 

That gap widened in the first quarter, with loan sizes for those moving to new lenders rising 5% year-on-year alongside a 37% fall in loan size for product transfers to £80,749.

The wider market has seen a 15% annual rise in overall regulated mortgage sales in Q1, while remortgage advances made up 29% of sales, up from 21% a year earlier.

Stonebridge chief executive Rob Clifford says: “You can see the hand of advisers at play here. 

“They are harnessing the power of MAAs to release customers who felt they were locked in, by helping borrowers jump to better deals with new lenders.  

“The use of product transfers dwindles which reflects better consumer outcomes.

“There’s clearly demand for MAAs, the FCA’s logic in giving lenders greater power to make common sense lending decisions is constructive and there’s no doubt they could be even more widely used.

“This isn’t just about mortgage prisoners or those whose income has been more irregular. 

“Plenty of entrepreneurs, for example, struggle to meet underwriting criteria after starting new businesses, despite paying a mortgage for years. It’s therefore pleasing to see the direction of travel in terms of lender adoption and brokers awareness.”