Product Transfers

A product transfer allows you to switch to a new deal with your current lender, such as moving onto a fixed or tracker rate, without changing lender or borrowing additional funds.

A remortgage, on the other hand, involves switching to a new lender or renegotiating your mortgage to potentially secure a better deal or release equity. Understanding the differences can help you decide whether staying with your current lender or exploring the wider market is the right approach.

Product transfers are often a cost-effective option, as they usually involve fewer fees than a full remortgage. Some lenders offer deals with no arrangement fees, although this will vary depending on the product and lender.

A product transfer with your existing lender does not require a solicitor or conveyancer, as there is no legal work involved. This is one of the reasons why product transfers are typically quicker and simpler than switching lenders.

While you can arrange a product transfer directly with your lender, working with a broker ensures you are comparing it against the wider market. In some cases, switching lender may provide better long-term value, particularly if your circumstances have changed or you are considering a remortgage.

Not all lenders offer product transfers. Some lenders only operate through brokers and may require you to apply for a new mortgage product rather than switching internally. The options available will depend on your lender and the type of mortgage you currently hold.

Yes, although it is less common than with a full mortgage application. Some lenders may still carry out checks, particularly if your circumstances have changed. Factors such as existing credit commitments, including an overdraft, can still influence a lender’s decision.

Product transfers are usually completed quickly, often within a couple of weeks. As there is no need for a full application, valuation or legal work, the process is much simpler than a standard remortgage.

For a product transfer, lenders typically do not conduct additional credit checks. However, your existing financial conduct will still be considered. If you are unsure how your finances might be viewed, it can help to understand what lenders look for on bank statements.

If you are concerned about your credit history you can obtain a free credit report from Check My File.

Income verification is not always required for a product transfer, especially if you are not borrowing more. However, if your circumstances have changed, lenders may still review your affordability, including what they assess on payslips.

A new valuation is not typically required for a product transfer, as lenders will usually rely on their existing valuation or internal estimates. However, if you are considering switching lender instead, it may be worth reviewing whether to have your property valued before remortgaging.

Many lenders allow you to secure a new rate up to six months before your current deal ends. This can help you avoid moving onto a higher standard variable rate.

If you are currently tied into a fixed rate, it’s important to understand whether switching early could result in charges, particularly if you are considering changing lender during your deal period.