A product transfer mortgage occurs when you switch mortgage deals with your existing lender rather than remortgaging with a new provider. Typically, product transfers are a quick and straightforward process.
However, while product transfers can be convenient and fast, it’s important not to accept one without first exploring whether better interest rates are available from other lenders.
Consulting with a mortgage broker who can access the entire market before committing to a deal is highly recommended.
If you’re wondering whether a product transfer or remortgage is your best option, this is the guide for you. We cover everything you need to know, as well as how our advisors can help:
A product transfer is essentially a type of remortgage, but it specifically refers to refinancing with your current lender. Generally, the term “remortgage” can apply to switching your mortgage to either your current lender or a different one, but if you’re changing lenders, it wouldn’t be considered a product transfer.
The process of remortgaging with a different lender can take longer and may involve additional steps, particularly if you’re borrowing extra funds. On the other hand, a product transfer typically offers a quicker process but limits you to the mortgage deals available from your current lender.
Product transfers usually don’t require a full property valuation if the loan amount remains unchanged, which can speed up the completion time.
If you’re refinancing with your current lender to borrow more, this would be classified as a specific type of product transfer known as a further advance. These arrangements often involve more thorough eligibility checks, a property valuation and additional legal requirements.
If you’re worried about the stress and complexity that comes with applying for a remortgage, having a qualified broker by your side can make the world of difference.
Their guidance can be invaluable, simplifying your journey from start to finish and ensuring that you make informed decisions every step of the way.
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The lists below highlight the advantages and disadvantages of a product transfer compared to remortgaging with a different lender.
In summary, the primary advantage of a product transfer is its quicker completion time. However, while you might save on upfront fees, locking into a deal with your current lender without exploring better options elsewhere could end up costing you more in the long run.
Remortgaging is an opportunity to find a better deal than the one you’re currently on and hopefully reduce your monthly outgoings – whilst avoiding the uncertainty of the Standard Variable Rate.
A Debt Consolidation mortgage aims to combine all outstanding borrowings into one repayment, lowering the amount taken from you each month. By consolidating your debts, you will lift some weight off your shoulders.
A Homeowner Loan (also known as a Secured Loan or Second Charge Mortgage) allows you to use the value of your home to borrow lump sums of money, with the amount you’ve borrowed secured against your property.
If you want to know more, why not check our guide to mortgage terms or FAQs section. We cover everything you need to know, explaining mortgage terms and commonly asked questions.
Alternatively, speak to one of our advisors to learn more about debt consolidation. Fill out a contact form by clicking the button below.
