Product Transfer vs Remortgage

When it comes to managing your mortgage, you have a couple of primary options to consider: product transfer and remortgage. Both routes can help you secure better terms on your mortgage, but they come with different processes and benefits. Let’s break down the differences between a product transfer and a remortgage to help you make an informed decision.

What is a product transfer?

A product transfer occurs when you switch from one mortgage deal to another with your existing lender. This typically happens when your current mortgage deal is about to end. Many lenders provide a variety of products, allowing you to select a new deal that fits your financial situation without the inconvenience of changing lenders.

Benefits of a product transfer

  1. Simplicity: Since you’re staying with your existing lender, the process is usually quicker and involves less paperwork compared to a remortgage.
  2. No legal fees: You won’t need a solicitor to handle the transfer, which can save you money.
  3. No credit checks: Your current lender already has a relationship with you, so a product transfer often doesn’t require a new credit check.
  4. Avoid valuation costs: In many cases, your lender won’t need a new property valuation.

Learn more: Product transfer mortgages

When to Consider a Product Transfer

  • Approaching End of a Fixed Term: If your fixed-rate mortgage is nearing its end, a product transfer can help you avoid reverting to a potentially higher standard variable rate (SVR).
  • Stable Financial Situation: If your financial situation hasn’t changed significantly, sticking with your current lender might be the simplest option.
Understand the pros and cons of product transfers and remortgages to choose the best path for your mortgage.

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What is a remortgage?

A remortgage involves switching your existing mortgage to a new lender. This process can help you secure better interest rates, release equity from your property, or consolidate other debts.

Benefits of a remortgage

  1. Competitive rates: By shopping around, you might find a lender offering lower interest rates than your current lender.
  2. Equity release: If your property has increased in value, you can remortgage to release some of the equity tied up in your home.
  3. Debt consolidation: A remortgage can help consolidate higher-interest debts into one manageable monthly payment.
  4. Flexible terms: You might find a mortgage with more flexible terms that better suit your current needs.

Learn more: What is a remortgage?

When to consider a remortgage

Better rates available: If interest rates have dropped or you find a more competitive offer elsewhere, remortgaging can save you money.

Equity utilisation: If you need funds for home improvements or other large expenses, releasing equity through a remortgage can be a viable option.

Financial changes: If your financial situation has changed (e.g., increased income, improved credit score), you might qualify for better mortgage terms.

Key considerations

Fees and costs

Product transfer: Typically, lower costs as you avoid legal fees, valuation fees, and often no arrangement fees.

Remortgage: May involve legal fees, valuation fees, and possible arrangement fees with the new lender. Some lenders offer incentives like free legal work or valuation to attract new customers.

Time and effort

Product transfer: Generally faster and less paperwork since you’re staying with the same lender.

Remortgage: More time-consuming as it involves a new application process, credit checks, and possibly a new valuation of your property.

In summary, choosing between a product transfer and a remortgage depends on your individual circumstances and financial goals. If you prefer a quick, hassle-free process and are content with your current lender’s offers, a product transfer might be the best route. However, if you’re looking to take advantage of lower interest rates, need to release equity, or require more flexible terms, a remortgage could provide greater benefits.

Always consider speaking with a mortgage advisor to explore all your options and find the best solution for your needs. They can offer tailored advice based on your specific financial situation and help you navigate the complexities of the mortgage market.

By understanding the differences between a product transfer and a remortgage, you can make a more informed decision and potentially save money on your mortgage in the long run.


What is the difference between a product transfer and a remortgage?

A product transfer involves switching to a new mortgage deal with your existing lender, while a remortgage means moving your mortgage to a new lender to secure better rates or terms.

Why would I choose a product transfer over a remortgage?

You might choose a product transfer for its simplicity, speed, and lower associated costs. It doesn’t require legal fees, a new credit check, or a property valuation, making it a more straightforward option if you’re happy with your current lender.

When is remortgaging a better option?

Remortgaging can be advantageous if you find a lender offering significantly better interest rates, want to release equity from your property, or need to consolidate debts. It’s also beneficial if your financial situation has improved, allowing you to qualify for better mortgage terms.

Are there fees associated with product transfers?

Typically, product transfers involve lower costs since you avoid legal fees and valuation fees. Some lenders may charge a product fee, but this is generally less than the costs associated with remortgaging.

What are the costs involved in remortgaging?

Remortgaging can include various fees such as legal fees, valuation fees, and arrangement fees. However, many lenders offer incentives like free legal work or free valuations to attract new customers.

How long does a product transfer take?

A product transfer is usually quicker than a remortgage, often taking just a few weeks to complete. The process is streamlined since you are staying with your existing lender and there is less paperwork involved.

How long does it take to remortgage?

Remortgaging typically takes longer than a product transfer, often around 4 to 8 weeks. This includes the time needed for the new lender to process your application, conduct credit checks, and possibly arrange a valuation.

Will I need a solicitor for a product transfer?

No, you generally do not need a solicitor for a product transfer since you are not changing lenders.

Do I need a solicitor for remortgaging?

Yes, remortgaging usually requires the services of a solicitor to handle the legal aspects of transferring your mortgage to a new lender.

Can I negotiate better terms with my current lender during a product transfer?

Yes, it’s worth discussing your options with your current lender. They may offer you competitive rates to retain your business, especially if you have a good repayment history.

Can I release equity from my property with a product transfer?

No, product transfers typically do not involve releasing equity. If you need to release equity, a remortgage is usually the better option.

What impact does my credit score have on product transfers and remortgages?

For a product transfer, your current lender usually doesn’t perform a new credit check. However, for a remortgage, your new lender will conduct a credit check, so a good credit score can help you secure better rates and terms.

Should I seek professional advice when deciding between a product transfer and remortgage?

Yes, consulting with a mortgage advisor can provide valuable insights tailored to your financial situation, helping you make the best decision for your needs.

What happens if I do nothing when my fixed-rate mortgage ends?

If you do nothing, your mortgage will typically revert to the lender’s standard variable rate (SVR), which is often higher than the rates available through a product transfer or remortgage. It’s advisable to explore your options before your current deal expires.

Can I switch to a fixed-rate or variable-rate mortgage with a product transfer or remortgage?

Yes, both options allow you to switch to a different type of mortgage product. You can choose from fixed-rate, variable-rate, or tracker mortgages based on your preference and financial goals.

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