What Is A Remortgage
When your fixed mortgage rate comes to an end, many homeowners find themselves asking the same question: should I remortgage or take a product transfer? It is a decision that can have a real impact on your monthly payments, long-term costs and flexibility, yet it is often made without fully understanding the differences.
Both options involve changing your mortgage deal, but they work in very different ways. The right choice depends on your personal circumstances, your future plans and what the market is offering at the time.
This guide explains the difference between remortgaging and taking a product transfer in clear, straightforward language. The aim is to help you feel informed and confident before making a decision. If you are unsure which route is right for you, please contact Ian Smith, your whole of market mortgage and protection adviser based in Essex.
A remortgage is when you move your mortgage from your current lender to a new lender.
This is most commonly done when an introductory rate comes to an end and you want to avoid moving onto your lender’s standard variable rate. Remortgaging can also be used to raise additional funds for home improvements, consolidate debts, or change the structure or term of your mortgage.
Because you are moving lenders, a remortgage involves a full mortgage application. This usually includes affordability checks, a valuation on the property and legal work to transfer the mortgage.
Accessing the wider market can be valuable here, especially when rates and criteria differ between lenders. This is when you should contact me to compare options properly. Once the new lender a product is secured, I will monitor the lender rates right up to the deadline. If any reductions come, I will always make sure that you are on the optimal rate…this is mortgage rate management, and is all part of the service.
What Is A Product Transfer
A product transfer means staying with your current lender and switching to a new mortgage deal when your existing rate ends. In most cases, there is no need for a solicitor and the process is much simpler. Many lenders do not require a full affordability reassessment.
Product transfers can be a good option if you are happy with your lender, do not need to borrow more money and want a straightforward switch.
It is still important to allow me to process this for you, this enables me to take advantage of any further reductions that the lender may make on your chosen product.
Key Differences Between A Remortgage And A Product Transfer
The most obvious difference is choice, and timing
A remortgage allows you to move lender and access a wider range of rates and features, it also allows you start earlier (6 months before your current deal ends).
A product transfer keeps things simple, but limits you to your existing lender’s deals (product transfer deals are often not available until 3-4 months before the current deal ends).
Costs, timing, flexibility and long-term value should always be considered, not just the headline rate.
When A Remortgage Might Be The Better Option
A remortgage is often worth exploring if you want to raise extra money or your current lender is no longer competitive. This options can be started 2-3 months product transfer deals are shown, allowing you to lock in a rate much earlier.
It may also suit you if your circumstances have improved since you last applied, giving access to better deals elsewhere.
When A Product Transfer Might Make More Sense
A product transfer can be ideal if your circumstances are more complex now, or you want minimal paperwork. There a no credit checks or valuations.. all you need to have is no mortgage arrears with your current lender, this is essential.
Factors To Think About Before You Decide
Always look beyond the interest rate.
Consider fees, early repayment charges, flexibility and your future plans.
If you are unsure how these factors apply to you personally, this is when you should contact me, Ian Smith, your whole of market mortgage and protection adviser in Essex. I will give you clear and practical guidance, and always make sure you are on the optimal rate available.
How A Mortgage Advisor Can Help You Choose
As a whole of market mortgage broker, I compare both product transfer and remortgage options across the market.
I look at the true cost, not just the rate, and help time the switch so you avoid unnecessary increases.
Having someone on your side can remove a lot of uncertainty and make the process a whole lot easier.
Next Steps If Your Mortgage Deal Is Ending
Check when your current deal finishes and gather your latest mortgage details.
Contact me a few months in advance to review your options properly, that way we can make a confident and un-rushed decision.
To book an appointment, you can drop me an email, give me a call, or complete the enquiry form on the website. I’m here to help with all your mortgage needs, and getting in touch early can help avoid unnecessary extra costs.
