If your current mortgage deal is coming to an end, you may be wondering whether to take a product transfer or look at a remortgage instead.
A product transfer means switching to a new deal with your existing lender rather than moving to a different lender. It can be a simple option in some cases, but it is not always the best one.
How does a product transfer work?
When your fixed rate or introductory deal is close to ending, your current lender may offer you a range of new products. If you choose one of those deals and stay with the same lender, that is usually called a product transfer.
This can sometimes be quicker and involve less paperwork than a full remortgage because you are not changing lender.
Why some borrowers choose a product transfer
A product transfer may appeal if you want:
- a simpler process
- less paperwork
- no full lender switch
- a quick route onto a new deal
- to avoid rolling onto a higher standard variable rate
In some cases, this can be a sensible option, especially where time is tight or the alternatives are limited.
When remortgaging might be better
Staying with your current lender is not automatically the best outcome. A remortgage may be worth considering if:
- a better deal is available elsewhere
- you want to borrow more
- your circumstances have improved since you took out the original mortgage
- you want a different mortgage structure or flexibility
- you want to review the wider market rather than only one lender’s options
Is a product transfer cheaper?
Sometimes, but not always.
The headline rate is only one part of the picture. It is worth looking at any fees, the length of the deal, the overall cost over time and whether the product still suits your plans.
Product transfer or remortgage?
The best option depends on your goals.
If you simply want to move onto a new deal quickly with minimal changes, a product transfer may be suitable. If you want to compare a wider range of options or your needs have changed, a remortgage may be better.
Get advice before deciding
If your deal is ending soon, it is worth reviewing your options early. At CW Mortgages, Ian Smith can help you compare whether a product transfer or remortgage looks more suitable for your situation.
