When your current mortgage deal is coming to an end, your existing lender may offer you a new rate. Staying where you are can feel like the easiest option, especially if you want to avoid a full remortgage.
However, simple does not always mean best value. A product transfer may be suitable, but it is still worth checking how the rate, fees, monthly payment and overall cost compare with wider remortgage options.
This guide explains when a product transfer may make sense, what to check before accepting one, and how to compare it against other routes before your current deal ends.
Before you accept a product transfer
✓ You stay with your current lender
A product transfer usually means switching to a new mortgage deal with the lender you already have.
✓ It can be simpler than remortgaging
You may avoid changing mortgage providers, although your lender may still carry out checks depending on what you want to change.
✓ It may not show the whole market
Your current lender’s offer only reflects their own products, so it is worth comparing it against wider remortgage options.
✓ The lowest rate is not always the best deal
Fees, incentives, early repayment charges, monthly payments and total cost all need to be considered together.
What is a product transfer?
A product transfer is when you move from your current mortgage deal to a new deal with the same lender.
You are not switching mortgage providers. Instead, you are choosing a new mortgage product from the lender you already use. This may be a new fixed rate, tracker rate or other available deal.
Product transfers are often used when an existing mortgage rate is close to ending. They can be simpler than remortgaging because you stay with the same lender, but the new deal still needs to be checked carefully.
The rate, product fee, mortgage term, repayment type and total cost can all affect whether staying with your current lender is the right choice.
Product transfer vs remortgage
A product transfer and a remortgage can both help you move onto a new mortgage deal. The main difference is whether you stay with your current lender or compare options with other lenders.
Option 1: Product transfer
Stay with your current lender
A product transfer may be a simpler route if your existing lender has a suitable deal and you do not need to make major changes to your mortgage.
It can reduce the admin involved, but your lender’s offer should still be compared against wider options, fees and total cost.
Option 2: Remortgage
Switch to a new lender
A remortgage means replacing your current mortgage with a new deal from another lender, which may give you access to a wider range of rates, products and borrowing options.
It can involve more checks, valuation requirements or legal work, so the right choice depends on cost, timing and what you want to change.
What a product transfer could look like in practice
A product transfer can look simple on the surface, but the right choice depends on how your current lender’s offer compares with the wider market.
01 Your current deal is ending
Mortgage balance: £220,000
Remaining mortgage term: 24 years
Current deal ends: In 3 months
Your lender offers you a new fixed rate before your current mortgage deal finishes.
02 Your lender offers a product transfer
Product transfer: 4.85%
Product fee: £999
Lender change: No
This may be a convenient route because you stay with your current lender and move onto a new deal.
03 You compare a remortgage
New lender rate: 4.65%
Product fee: £1,499
Lender change: Yes
The remortgage has a lower rate, but the higher product fee and lender change need to be compared against the potential savings.
What this comparison shows
The lowest rate is only one part of the decision.
✓ A lower rate can be offset by a higher product fee
✓ Staying with your current lender may save time, admin and legal work
✓ Switching lenders may give you wider options if your current offer does not fit
✓ The right deal should work for your monthly payments, total cost and future plans
The strongest option is not always the lowest headline rate. It is the deal that gives you the best overall fit for your cost, timing and circumstances.
Illustration only: Actual payments depend on your mortgage rate, term, fees, repayment type, lender criteria and personal circumstances.
How to compare the real cost
When comparing a product transfer with a remortgage, try not to focus on the interest rate alone. The lowest rate is not always the cheapest option once fees, incentives, timing and flexibility are included.
Before choosing a deal, it helps to compare:
- the interest rate and how it affects your monthly payment
- any product fee, including whether it is paid upfront or added to the mortgage
- incentives such as cashback, free valuation or legal support
- the total cost over the initial deal period
- whether the deal gives you enough flexibility to overpay, move home or borrow more later
The fairest comparison is usually the full cost of the deal, not just the headline rate.
When should you look at a product transfer?
It is usually worth reviewing your product transfer and remortgage options several months before your current mortgage deal ends.
Starting early gives you more time to compare your lender’s offer, check wider options and avoid making a rushed decision close to your end date.
Why timing matters
If your current deal ends before you have a new one in place, you will usually move onto your lender’s standard variable rate.
This can be higher than fixed, tracker or discounted deals, which may increase your monthly payments.
Why speed is not everything
A product transfer can be quick and convenient, but it still needs to be the right deal for your mortgage.
Before accepting your lender’s offer, compare the rate, product fee, monthly payment, total cost and flexibility. It is also worth checking whether switching mortgage providers could give you a more suitable option.
Is your current deal ending soon?
Compare your current lender’s offer against remortgage options before you decide.
What you may be able to change with a product transfer
A product transfer is usually simplest when you move to a new deal with your existing lender without making major changes.
However, some lenders may allow certain changes at the same time. What is available depends on your lender, mortgage type and circumstances.
Your mortgage rate
You may be able to move onto a new rate with your existing lender, such as another fixed, tracker or discounted deal.
Your mortgage term
Some lenders may let you extend or shorten your term, although this can affect your monthly payments, total interest and future affordability.
Additional borrowing
Some lenders may allow you to borrow more, but this is usually assessed separately and may involve affordability, income and property checks.
Bigger changes
Removing a borrower, changing repayment type or making larger structural changes may need a more detailed review, or a full remortgage.
What lenders may check
A product transfer may involve fewer checks than switching to a new lender, especially if you are moving onto a new deal without making major changes. However, it is not always automatic.
Check
What it means
Mortgage balance and term
How much you still owe and how long is left on the mortgage.
Repayment type
Whether you are on repayment or interest-only, and whether that can stay the same.
Payment history
Whether you have kept up with your mortgage payments.
Loan-to-value
How your mortgage balance compares with your property value.
Property value
Whether the property value still supports the deal you want.
Additional borrowing
Whether borrowing more requires extra affordability or property checks.
Income or circumstance changes
Whether changes to your income, spending or wider situation affect what the lender will allow.
If you want to make a bigger change, your lender may carry out extra affordability checks. In some cases, comparing remortgage options could give you more choice.
How to choose the right route
Choosing between a product transfer and a remortgage is not only about the lowest rate. The better route is usually the one that gives you the right balance of cost, suitability, speed and flexibility.
Route one
Staying with your lender
A product transfer may make sense if your current lender’s offer is competitive, you want a simpler process, and you do not need to make major changes to your mortgage.
Before accepting, it is still worth comparing the full cost against wider remortgage options.
Route two
Switching to a new lender
A remortgage may be worth checking if another lender could offer better value, you need more flexibility, want to borrow more, or your circumstances have changed.
Before switching, check the fees, timing, affordability requirements and any early repayment charges.
Benefits and trade-offs of a product transfer
A product transfer can be a practical option when your current mortgage deal is ending. However, like any mortgage decision, it should be compared against the alternatives before you commit.
Benefits
It can be simpler
You stay with your current lender, so there may be less paperwork than switching mortgage providers.
It may be quicker
A new deal can often be arranged before your current rate ends, helping you avoid moving onto your lender’s standard variable rate.
Legal work may be limited
Because you are not changing lenders, you may not need the same conveyancing process as a full remortgage.
Trade-offs
You only see one lender’s options
Your lender’s offer does not show what may be available across the wider mortgage market.
You may have less flexibility
Some lenders may limit changes such as extra borrowing, term changes or repayment type changes.
It can still lock you into a new deal
A new product may include early repayment charges, so it should fit your future plans.
How Muttuo Mortgages can help
A product transfer can feel like the simplest option when your current mortgage deal is ending. But it is still worth checking whether staying with your current lender gives you the right balance of rate, cost, flexibility and timing.
Muttuo Mortgages can help you compare your lender’s offer against remortgage options from over 100 lenders, so you can make a clearer decision before your current deal ends.
Our team can help you check:
✓ whether your current lender’s product transfer is competitive
✓ how the rate, fees and incentives affect the real cost
✓ whether a remortgage could offer better overall value
✓ whether your mortgage term, repayment type or borrowing needs have changed
✓ how early repayment charges, timing and lender criteria may affect your options
That way, you can choose your next mortgage deal with more confidence, rather than accepting the first option available.
Compare before you stay
Compare product transfer and remortgage options from over 100 lenders before you decide.
Rated Excellent
by UK homeowners
Frequently asked questions about product transfers
What is a product transfer mortgage?
A product transfer is when you switch to a new mortgage deal with your existing lender.
Instead of moving your mortgage to a new lender, you choose another product from the lender you already use. This often happens when your current fixed, tracker, or discounted deal is coming to an end.
A product transfer can be simpler than a full remortgage, but it is still worth comparing the rate, fees and total cost against wider mortgage options before deciding.
Is a product transfer the same as a remortgage?
No, a product transfer keeps you with your current lender, while a remortgage usually means switching to a new lender.
Both routes can help you move onto a new mortgage deal, but the process is different. A product transfer may involve fewer checks and less legal work because you are staying with the same lender.
A remortgage may involve more paperwork, but it can give you access to a wider range of lenders, rates and mortgage options.
Is it better to do a product transfer or remortgage?
It depends on your current lender’s offer, the wider market and what you need from your next mortgage deal.
A product transfer may be suitable if your current lender has a strong offer, you want a simpler process and you do not need to make major changes to your mortgage.
However, a remortgage may be worth considering if another lender could offer a better overall deal, more flexibility or a mortgage structure that better fits your plans.
Can I get a better deal by switching mortgage providers?
You might, but the best option depends on the full cost, not just the interest rate.
Another lender may offer a lower rate, but you should also compare product fees, incentives, valuation costs, legal work, monthly payments and the total cost over the deal period.
In some cases, your current lender’s product transfer may still be more suitable. In others, switching mortgage providers could offer better value.
Do I need an affordability check for a product transfer?
Not always, but it depends on the lender and whether you want to make changes to your mortgage.
A straightforward product transfer may involve fewer checks than a full remortgage, especially if you are not borrowing more or changing the mortgage significantly.
However, if you want to increase your borrowing, change the term or make a bigger adjustment, your lender may reassess your income, spending and wider financial commitments.
Can I borrow more with a product transfer?
Some lenders may allow additional borrowing alongside a product transfer, but it is not automatic.
If you want to borrow more, your lender will usually need to check whether the higher mortgage is affordable. They may look at your income, spending, credit profile, property value and loan-to-value.
If your current lender cannot support the extra borrowing, a full remortgage with a different lender may be worth exploring.
When should I start looking at product transfer options?
It is usually worth reviewing your options several months before your current mortgage deal ends.
Starting early gives you time to check your current lender’s product transfer offer, compare wider remortgage options and avoid making a rushed decision.
It can also help you reduce the risk of moving onto your lender’s standard variable rate if your current deal ends before a new one is arranged.
What happens if I do nothing when my mortgage deal ends?
You will usually move onto your lender’s standard variable rate.
A standard variable rate can be higher than the rates available through a product transfer or remortgage. This could increase your monthly mortgage payments.
If your current deal is coming to an end, it is usually worth checking your options before the end date so you can decide whether to stay with your lender, switch lender or review your mortgage more widely.
