Product transfer vs remortgage: which is right for you?

General guidance, not a personal recommendation. Lender criteria, insurance terms and costs depend on the product and your circumstances. Numerical examples are illustrations unless expressly identified as an individual quote. Check current terms with your adviser and tax or legal points with the relevant specialist.

When your fixed deal ends, you can compare a product transfer with your current lender against remortgaging to a different lender. Payments, costs, property value, income, commitments, eligibility and future plans all affect which route is suitable.

A product transfer may involve less administration. A remortgage can offer different products or borrowing options, but needs a new application and may involve legal work and fees. We compare suitable options, their overall costs and how they fit your circumstances.

Product transfer vs remortgage

Product transfer, stay put

A product transfer means taking a new deal with your current lender. It may involve less administration than moving lender, but the available products, checks, fees and timing depend on the lender and any changes requested.

Remortgage, move lender

A remortgage replaces your current mortgage with one from a different lender. It involves a new application and lender checks, and may require valuation and legal work. Available products, costs and timing vary. A lower rate does not necessarily mean a lower overall cost.

When a product transfer may suit you

A product transfer may suit you if your current lender offers an appropriate deal or if moving lender would be difficult. Check the products, conditions, costs and flexibility available. If you plan to sell or move soon, consider how any early repayment charge could affect that plan.

When a remortgage may suit you

A remortgage may offer a suitable combination of overall costs, product features or borrowing options unavailable from your current lender. Eligibility depends on the lender and your circumstances. Additional borrowing is subject to affordability and lender criteria.

Cost comparison

Compare product fees, any early repayment charge, legal and valuation costs, administration charges. Major Money Matters charges no client broker, advice or arrangement fee for mortgage advice. The client fee is £0. Some products include a legal or valuation package, but exclusions or other costs may apply. Fees added to the mortgage may attract interest. Your adviser will explain the costs relevant to your options; switching does not guarantee a saving.

Timing: when to start

Consider reviewing your options around six months before your current deal ends. Lenders' product-transfer windows and mortgage-offer periods vary. Check your current deal end date, any early repayment charge and the costs of changing your mortgage before deciding when to proceed. Some lenders may let you reserve a deal ahead of your current deal ending or change to an available rate before completion. The rules, timing, eligibility and any costs vary. Rates may rise or fall; a lower rate or a change to a reserved deal is not guaranteed.

How we decide which is right for you

When your fix is ending, we run a simple comparison:

1. Check the products your current lender can offer, including its application window, eligibility conditions and fees.
2. Compare suitable alternatives available through our lender panel, including the rate, payments, fees, term and product features.
3. Compare total costs over an appropriate, clearly stated period, including any early repayment charge and costs of switching. Consider changes to the term and the interest payable.
4. Consider suitability as well as cost: your budget, future plans, flexibility, eligibility and practical timing matter. Your adviser can explain the trade-offs before making a recommendation.

There is no universal loan balance or rate difference that makes moving lender worthwhile. The result depends on the repayment type, remaining term, product period, fees, charges and your circumstances. Compare the full costs and suitability of both routes.