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They could, but that beneficial interest wouldn't take priority over a prior legal charge in favour of the lender. The bank might have a genuine interest in having any co-occupiers disclaim any equitable rights on a remortgage but once the legal charge is in place the lender's position is safe.
I suppose the lender might just be being ultra-cautious.
Brommers
It is common, broadly for the reasons you describe - there's a risk that a cohabitee can obtain an equitable interest in the property by living there and contributing to costs.