- The FCA amended Modified Affordability Assessments (MAAs) rules last summer to make it much easier to remortgage to a new lender
- MAA product transfers collapse as overall MAA use continues to grow
The number of times Modified Affordability Assessments are used to keep borrowers with their existing lenders has reduced substantially in the wake of FCA changes to the underwriting rules, we can reveal¹.
Many borrowers assume they lack rebroking options but MAAs ensure that lenders are empowered to approve mortgages for those who have already demonstrated they can afford them.
The number of times MAAs were used for product transfers in the first quarter of 2026 plummeted from 550 to 100 — an 81.8% decline year-on-year.
This was despite a 30.2% annual jump in MAA remortgages overall to 5,828 in Q1, with the share of borrowers moving to a new lender with the help of MAAs rising from 87.7% to 98.3%.
This means the share of MAA remortgages represented by product transfers (internal remortgages) has fallen from 12.3% in the first three months of last year to just 1.7% in Q1 this year. All this despite the number of lenders using MAAs falling from 12 in the second half of 2025 to eight in Q1.
Since 21st July last year, lenders have been able to use MAAs when borrowers want to reduce their mortgage term, or when a mortgage with a new lender is more affordable than either their existing home loan or a new product from their current lender². The FCA wanted to make it easier for borrowers to move to a new lender, given that consumer choice can deliver material savings.
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 0.73pp lower in Q1, while the average loan amount was 141% greater at £194,999. That gap widened heavily in the first quarter, with loan sizes for those moving to new lenders rising 5.4% year-on-year alongside a 36.8% fall in loan size for product transfers to £80,749.
The wider market has seen a 15% annual rise in overall regulated mortgage sales¹ in Q1, while remortgage advances made up 28.1% of sales, up from 21.3% a year earlier³.
Rob Clifford, Chief Executive of Stonebridge, said:
“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.”
¹Source: FCA Freedom of Information request. MAAs are defined as any remortgaging case with the same or a different lender where they have relied on any of the MCOB 11.9 rules. Excludes BTL mortgages. All averages are median.
²FCA PS25/11
³BoE MLAR Q1 2026
