Product transfer vs remortgage: which is right for you?
When your current mortgage deal ends, you have two main choices: stay with your existing lender on a new rate (a product transfer), or move your mortgage to a different lender (a remortgage). Both can be sensible. The right one depends on your circumstances, and that is exactly the kind of thing worth talking through with an adviser.
What is a product transfer?
A product transfer is when you switch to a new deal with your current lender without moving your mortgage elsewhere. There is usually no new affordability assessment, no legal work, and no property valuation in most cases. It is quick and involves minimal paperwork. The trade-off is that you are limited to whatever deals your existing lender offers, which may not be the most competitive rates on the market.
What is a remortgage?
A remortgage moves your mortgage to a new lender. It opens up a wider range of options, so you can potentially access a better rate or different terms. It also lets you borrow more (for home improvements, for example) or change the structure of your mortgage. The trade-off is that it involves a full application, an affordability check, a property valuation, and legal work, so it takes longer and may involve some costs.
When a product transfer often makes sense
- Your current lender is offering a competitive rate
- Your circumstances have changed in a way that might make a new affordability check harder (reduced income, new credit commitments)
- You want speed and simplicity with minimal paperwork
- Your loan-to-value or property situation makes remortgaging awkward
- You are happy with your current lender and do not need to borrow more
When a remortgage often makes sense
- Better rates are available elsewhere than your lender will offer
- You want to borrow more than your current lender will allow
- You want to change your mortgage type or term
- Your home has increased in value, improving your loan-to-value and unlocking better rates
- Your financial situation has improved and you would pass a fresh affordability check comfortably
The honest answer
There is no universal winner. A product transfer is often quicker and easier, but a remortgage can save more over the term if a materially better deal is available elsewhere. An adviser compares your existing lender's product transfer offer against the range of options, factors in any fees and legal costs, and shows you the real cost difference over the deal period, not just the headline rate. That is the comparison that actually matters.
Not sure which is right for you?
An initial conversation can help us understand your circumstances and explain the next steps. A recommendation depends on a fuller review of your needs and the options available.
Review my remortgage optionsSpeak to a mortgage adviserRequest a free initial 15-minute call to discuss your current deal, circumstances and next steps. No obligation and no credit check at this stage. This is a callback request, not a confirmed appointment. Third-party costs may apply if you proceed.
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Want this weighed up for your own situation?
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