What is a product transfer?
A product transfer switches to a new deal with the existing lender without replacing the mortgage. It can be quick and may not require a new affordability assessment where nothing else changes.
What is different about remortgaging?
A remortgage moves the borrowing to another lender. It normally involves affordability, credit checks, valuation and legal work, but can open a wider range of products and criteria.
What should be compared?
Headline rate is only one part of the decision.
- Product and arrangement fees
- Valuation and legal incentives
- Early repayment charges
- Monthly payment and total cost
- Overpayment and portability rules
- Future borrowing plans
When staying may make sense
A product transfer can be valuable where income or credit has changed, the balance is small, fees outweigh savings or speed is important. The current lender’s offer should still be compared with realistic external alternatives.
Frequently asked questions
Does a product transfer need a credit check?+
Often not for a straightforward like-for-like switch, but the lender’s process and requested changes determine this.
Can I borrow more during a product transfer?+
Additional borrowing is usually assessed separately as a further advance and may require affordability checks.
How early can I secure a new deal?+
Lenders open product-transfer windows at different times, so check the current lender and compare the wider market early.