As a mortgage advisor I’m often asked about product transfers, and whether they are the right option. Put simply, a product transfer is when you stay with your current lender, but move onto a new mortgage deal. It’s important to get this right, as it gives you the chance to secure the best rate without unnecessary hassle. Many homeowners only hear about product transfers right at the end of their fixed rate deal, but it’s worth reviewing this as early as possible to make sure you’re not missing out.
Compared to a full remortgage with a new lender, a product transfer is usually quicker, much simpler, and often comes with fewer costs. So let’s break it down.
What Is a Product Transfer Mortgage?
A product transfer mortgage, explained simply, is staying with your current lender but moving to a new deal once your current fixed rate ends. There are no new credit checks, no underwriting, and no solicitors required. If you’ve kept up your payments and don’t have arrears, a product transfer is also 100% guaranteed.
Product Transfer vs Remortgage To A New Lender
- Product transfer: Staying with your existing lender, no valuation, no solicitor, low or no fees, and the process can sometimes be completed the same day.
- Remortgage to a new lender: This involves new affordability checks, paperwork, underwriting, a property valuation, and solicitors. It takes longer but sometimes offers cheaper rates or more flexibility if you want to borrow more, change your mortgage type, or extend your term.
How The Product Transfer Process Works, Step by Step
- I will monitor your current mortgage and let you know when your deal is due to expire.
- Your current lender will release these new products for you to choose from before your current deal ends. This is usually 3–6-months prior, depending on the lender.
- I will compare these products against the whole of the market. This lets us see if it’s best to stay put, or indeed up sticks and remortgage elsewhere.
- If a product transfer is right for you, we can lock it in straight away.
- If rates fall again before your new deal starts, I can deselect and reselect the lower product as many times as needed at no extra cost.
This flexibility ensures you always get the best rate available at the time of switching.
Checklist: The Benefits of a Product Transfer
- Extremely quick and simple – often completed in a day.
- Guaranteed acceptance if you’ve maintained your mortgage payments.
- Low or no fees – usually no solicitor or valuation costs.
- Competitive rates with the convenience of staying with your current lender.
- Peace of mind knowing your advisor is still comparing the whole of the market, ensuring it really is the best option.
When a Remortgage Might Be Better
Sometimes moving to a new lender is the smarter choice. If you want to borrow more money, change your mortgage type, extend your term, or if another lender is offering a much lower rate, a remortgage may be the best route. My role is to compare both options, product transfer versus a remortgage, and make sure you end up with the most suitable deal.
FAQs About Product Transfers
Do I need full affordability checks?
No. With a product transfer, you’re staying with the same lender, so no new affordability checks are required. No payslips, declaring credit balances, nothing.
How long does Mortgage Product Transfer take?
A product transfer can often be completed the same day. It’s far quicker than a full remortgage.
Is the product transfer always cheaper?
Not always. That’s why I’ll compare your lender’s deals against the whole market before deciding what’s best for you.
Do I need a solicitor for a Mortgage Product Transfer?
No. Unlike a remortgage, a product transfer doesn’t require legal work or valuations.
Final Thoughts
Before switching it’s always important to check both options. A product transfer or a remortgage shouldn’t be a difficult choice. You just need to know you’re getting the best deal for your circumstances.
I’m Ian Smith, your trusted mortgage advisor in Essex. I arrange hundreds of mortgages every year, and my priority is making sure my clients are always on the best rate available to them.
Book a free appointment with me today to discuss your options, let’s see how much you could save.
