A product transfer is when you move to a new mortgage deal with the same lender, typically when your current fixed or tracker rate is coming to an end. It is simpler and quicker than a full remortgage because the lender already holds your information and the property stays the same, so a new valuation and extensive affordability checks are usually not required.
Product transfers are popular because they involve less paperwork and can often be completed in a matter of days. Many lenders allow you to arrange a product transfer online or over the phone. However, the trade-off is that you are limited to what your current lender offers, which may not be the most competitive deal on the market.
It is always worth comparing a product transfer with what is available through a full remortgage before making a decision. A mortgage broker can help you weigh up both options. If you are happy with your current lender and their rates are competitive, a product transfer can be a straightforward way to avoid moving onto their standard variable rate.
Your two-year fixed rate is due to end next month. Your lender offers you a product transfer to a new five-year fix at 4.2%. After comparing this with remortgage deals from other lenders, you decide the product transfer is competitive and switch with minimal hassle.
Key Points
- Switching to a new deal with the same lender
- Quicker and simpler than a full remortgage
- Usually no new valuation or extensive affordability checks needed
- You may miss out on better deals available from other lenders
- Compare with remortgage options before committing