Product Transfer Mortgage
A product transfer mortgage allows you to switch to a new mortgage deal with your current lender when your existing mortgage or current deal is coming to an end. Instead of moving to a new lender, you stay with the same lender and choose a new mortgage product that suits your current financial situation and mortgage term.
At Jones & Young, we help mortgage customers compare their current mortgage deal against other options across the wider mortgage market. Many people consider a product transfer to avoid moving onto their lender’s standard variable rate and to secure a new deal before monthly payments increase.
Make a Mortgage Enquiry
What is a Product Transfer Mortgage?
A Product Transfer Mortgage allows you to switch your current mortgage deal to a new deal with the same lender rather than moving to a new lender. This usually happens when your fixed rate or current mortgage deal is coming to an end and your existing lender offers a different mortgage product.
Many homeowners choose a mortgage product transfer to avoid moving onto their lender’s standard variable rate, which could increase monthly mortgage payments. Depending on the mortgage rates available, a product transfer can sometimes help you secure a new mortgage deal without going through the full remortgage application process.
How Does a Mortgage Product Transfer Differ From a Remortgage?
A mortgage product transfer involves switching to a new deal with your current lender rather than moving to a different lender. In many cases, the process can be quicker because your existing lender already holds details about your current mortgage and payment history.
Remortgaging usually means applying for a new mortgage with a new lender. This may involve a full application process, affordability checks, a credit check and sometimes a new valuation or property valuation. Depending on your circumstances, switching lenders could give you access to different mortgage rates or more competitive rates elsewhere in the mortgage market.
When Should You Consider a Product Transfer?
Many homeowners start looking at a product transfer mortgage when their current deal ends or is coming to an end. If no action is taken, some lenders may move borrowers onto their lender’s standard variable rate, which could increase monthly payments over time.
A product transfer may be suitable if your financial situation has remained relatively stable and your current lender is offering a suitable new mortgage deal. However, it can still be worth comparing deals from other lenders before deciding whether to switch deals or stay with the same lender.
Can You Switch To a New Mortgage Deal With Your Current Lender?
Yes. Many lenders allow existing customers to switch to a new mortgage deal through online banking, over the phone or with support from a mortgage broker. Depending on the lender, you may be able to choose between a fixed rate, variable rate mortgage or another mortgage product.
Some lenders may also allow you to borrow more money as part of the product transfer process, although additional checks may apply depending on the amount borrowed and your mortgage balance.
How Does the Product Transfer Process Work?
The product transfer process will vary between lenders, although it is often simpler than applying for a completely new mortgage. Your current lender may ask for key details such as your mortgage account number, repayment type and confirmation of your current financial situation before offering a new deal.
Some product transfer mortgages can be completed without legal fees or valuation fees, although this will depend on the lender and mortgage product selected. In some cases, product fees or an arrangement fee may still apply.
What Are the Advantages of a Product Transfer Mortgage?
A Product Transfer Mortgage has several advantages:
Potentially Lower Monthly Payments
Switching to a new mortgage deal with your current lender could help reduce monthly mortgage payments, depending on the interest rate and mortgage product available at the time.Simpler Than Switching Lenders
Because you stay with the same lender, the product transfer process can sometimes involve fewer checks and less paperwork than applying for a new mortgage with a different lender.Faster Application Process
Many product transfer mortgages can be arranged more quickly than a full remortgage. In some cases, existing customers may even be able to switch deals through online banking without needing legal or valuation fees.What Are the Disadvantages of a Product Transfer Compared to Remortgaging?
A product transfer can be a simpler option for some borrowers, but it may not always be the right deal long term. Because you stay with the same lender, you will usually only be offered mortgage products from your current provider rather than deals from the wider mortgage market.
This means other lenders could potentially offer lower mortgage rates, reduced monthly payments or a more suitable new mortgage deal based on your current financial situation. If you need to borrow more money, the additional borrowing may also come with a different interest rate or mortgage term, which can make future switching lenders or remortgaging more complicated.
Before agreeing to a mortgage product transfer, it can help to compare your existing deal against other options available across the market.
Mortgage Advice for Product Transfers and Remortgaging
30+ Years As Mortgage Advisers
Jones & Young has supported homeowners, self employed applicants and business owners across a wide range of mortgage and remortgage situations.
Advice Based on Your Circumstances
We look at your current mortgage, financial situation and future plans when comparing product transfer and remortgage options.
Access to the Wider Mortgage Market
While some borrowers choose to stay with their current lender, comparing deals across the wider mortgage market can sometimes help identify other suitable options.
Read What Our Recent Clients Say About Our Product Transfer Mortgage Service
Related Articles For Product Transfer Mortgages
The Different Types of Mortgage Lenders Explained
What Do Mortgage Lenders Look For? The Complete Guide
Speak to Jones & Young About Your Mortgage Options
If your current mortgage deal is coming to an end, Jones & Young can help you compare product transfer and remortgage options based on your circumstances. Whether you are considering staying with your current lender or switching to a new mortgage deal, our team can help you understand the options available.
Specialist Mortgage Advice for Complex or Non-Standard Circumstances
60-95% Loan to Value (LTV)
Loan to Value(LTV) options typically 60-95%
Trusted Advice
Clear and concise guidance based on your circumstances.
Communication
Helping customers cut through the noise to understand things their way.
Gross Pay Used
The Lenders average your income over the last 3 months' GROSS pay. Not the net amount from your tax calculations.
Specialist Rates
We help you explore options across mainstream and specialist lenders, focusing on those whose criteria match your credit history.
30+ Years As Mortgage Advisers
We have been providing business owners and the self employed with mortgage advice
Individual Tailored Advice For Mortgage & Protection
Tailored advice recommended for your personal situation
Whole Of Market Access
Access to a wide range of lenders, including specialist mortgage providers
Read What Our Recent Clients Say About Our Product Transfer Mortgage Service
Related Articles For Product Transfer Mortgages
The Different Types of Mortgage Lenders Explained
What Do Mortgage Lenders Look For? The Complete Guide
Product Transfers FAQs:
Weโve answered some of the most common questions about product transfer mortgages, switching deals and comparing your options when your current mortgage deal is coming to an end.
What happens when my current mortgage deal ends?
When your current deal ends, your lender may move you onto their standard variable rate SVR unless you switch to a new mortgage deal. This could increase your monthly payments, which is why many borrowers review their options a few months before their current mortgage deal comes to an end.
Does a product transfer require a credit check?
Some lenders carry out a credit check during the product transfer process, while others complete fewer checks for existing customers. Requirements can vary depending on the lender, whether you are borrowing more money and the type of mortgage product selected.
Are there legal fees or valuation fees with a product transfer?
Many product transfer mortgages do not involve legal fees or valuation fees because you are staying with the same lender. However, some mortgage products may still include product fees or an arrangement fee, so it is important to check the key details before agreeing to a new deal.
Can I borrow more money with a product transfer mortgage?
In some cases, yes. Your current lender may allow additional borrowing as part of a mortgage product transfer. This will usually depend on your financial situation, mortgage balance and the lenderโs application process.
Is a product transfer better than remortgaging?
A product transfer can be quicker and simpler than switching lenders, but it may not always offer the right mortgage deal long term. Comparing mortgage rates from your current lender alongside options from other lenders can help you decide whether a new mortgage elsewhere could be more suitable.
