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Product Transfer Mortgages

The key information you need to know about transferring your mortgage.

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Pete Mugleston

Author: Pete Mugleston - Mortgage Advisor, MD

Updated: June 23, 2022

Important

It’s time to find a better deal. With interest rates at historic lows, now is the time to speak to an expert mortgage broker to find out how much you could save

Remortgaging is an essential part of homeownership for anyone who wants to stay on the most competitive rates and the ideal term for their needs and circumstances.

But when the time comes to refinance, should you stick with your current lender and take out a product transfer, or switch to a new mortgage provider? In this guide, we weigh up the advantages and disadvantages of each option to help you decide.

Read on for more information or use the menu below to jump directly to a topic…

What is a product transfer mortgage and how do they work?

A product transfer mortgage is basically a remortgage with your current mortgage lender. It involves switching to a new mortgage deal with them, with a more favourable interest rate where possible and potentially with a revised term if the borrower chooses to change this.

Product transfers don’t usually involve a full valuation of the property if the amount borrowed is unchanged, and this means that they can be very quick to complete.

If you’re refinancing with your current mortgage lender to borrow more, this would be classed as a specific type of product transfer known as a further advance. These agreements usually involve more eligibility assessments, a valuation and legal red tape.

Although product transfers can be relatively quick, taking your lender up on one without checking whether there’s a better deal elsewhere is not recommended. Speaking to a mortgage broker who has access to the entire market before you commit to a deal is strongly advised.

How are they different to remortgages?

They aren’t really any different, except a product transfer is a remortgage specifically with your current lender. Used generally, the term ‘remortgage’ can refer to refinancing with either your current lender or another one, but it wouldn’t be a product transfer if you were switching lenders.

In terms of the process involved, remortgaging with another lender can take longer than a product transfer and there may be extra steps to complete, especially if you’re borrowing extra. But with a product transfer, you’re limited to just one set of mortgage deals.

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Advantages and disadvantages

The table below shows the advantages and disadvantages of a product transfer versus remortgaging with another mortgage lender…

Advantages

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Product transfers usually involve less legwork for the borrower

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There’s less paperwork to fill out

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A full valuation might not be needed

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Borrowers usually exempt from legal fees

Disadvantages

Dash

Getting the best deal is less likely as you’re limited to one lender’s product range

Dash

Your lender won’t offer impartial, independent advice about your remortgage options

Dash

You might find it more difficult to get approved if your circumstances have changed

Dash

Being declined for a remortgage could be more costly without a broker to fall back on

In summary, the main benefit of agreeing to a product transfer over a remortgage is that it can be quicker to complete. Although you might also pay out less in upfront fees, keep in mind that you could end up out of pocket overall if you lock yourself into a deal with your current mortgage lender without checking whether there is a better one available elsewhere.

The benefits of considering another lender (switching)

Taking your mortgage lender up on a product transfer without checking what other remortgage deals are out there is not recommended. It’s strongly advised that you speak to a mortgage broker and ask them to search the entire market for you to see what’s on offer.

If you talk to a broker before settling on a remortgage option, this will open an entire market of products up to you. If the rates your current lender is offering really are the best available, your broker is obliged to tell you this and advise you to stick with that mortgage provider.

But using a mortgage advisor has other benefits, too, and they include…

  • You’d get impartial advice about all of your options, including which type of product to choose, when to remortgage and whether there are alternatives to consider
  • You would have a safety net if your lender declined you for a remortgage. Your broker can quickly find you another lender or help you appeal against the rejection
  • Fallback options if your circumstances have changed and you no longer fit the criteria at your lender. A broker can match you with another one who’s more likely to approve you

Many people take their lender up on a product transfer because they think it’s the quickest and easiest way to remortgage. In reality, a mortgage broker makes it just as easy to refinance with a new lender as they do all of the legwork for you and even help you with the paperwork.

Customer success stories

“I’ve always been with my current bank and assumed they’d reward me for my loyalty if I did my remortgage with them. I wanted peace of mind that the deal they were offering was the best available, so I contacted Online Mortgage Advisor after finding one of their articles on Google.

“They set up a free chat with a broker named Simu for me, and he searched the market and found a handful of better deals than the one my lender was trying to palm off on me.

“I’ve remortgaged with my current lender in the past, and I have to say, the process of doing it with another lender through Simu was just as quick, and I saved a tonne of money too!”

Joan, Anglesea

 

“Our mortgage lender contacted us about three months before our fixed-rate was up to discuss remortgaging, but friends of ours suggested chatting to a broker before taking them up on this.

“After searching for brokers online we came across Online Mortgage Advisor’s website and decided to give their broker-matching service a try. The process was an absolute breeze and they matched us with a remortgage advisor named Maxine in no time.

“Maxine found us a remortgage with another lender offering a rate of almost 1%, far better than the 2% our current lender was offering. She contacted the lender on our behalf and walked us through everything. It literally couldn’t have gone smoother. Thanks, Online Mortgage Advisor!”

Phil and Dionne, Preston

 

“I was worried about being declined for a product transfer because I’ve entered an IVA since taking out my original mortgage. I decided to seek expert advice before calling up my lender as I was worried they’d reject me for a remortgage or put my rates up really high.

“Online mortgage Advisor came highly recommended having helped my brother get a bad credit mortgage earlier this year, so I thought I’d give them a try. The broker they matched me with, Olly, was very reassuring from the off and made it clear that good deals were available to me.

“Thanks to his expertise I was able to remortgage very quickly with a specialist lender. I later learned that I would have been rejected for a remortgage if I’d contacted my old lender, so Online Mortgage Advisor really helped me dodge a bullet.”

Marlon, Cornwall

 

“When my lender called us up offering a product transfer, advice from a friend of ours who works in banking instantly sprung to mind. She told us it’s never a good idea to remortgage without checking the whole market first and suggested we use a broker to do this.

“We found Online Mortgage Advisor through Google and were impressed by the articles on their website. We gave their advisor-matching service a go and this is one of the best financial decisions we’ve ever made.

“The broker they matched us with, Sadie, found us three better deals than the one our lender was offering and she helped us choose one that was perfect for us. On top of that, she got us an even better deal on our home insurance too. Highly recommended!”

Ari and Melinda, Brighton

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Conditions mortgage lenders place on product transfers

Some mortgage lenders apply specific terms, conditions and caveats to their product transfers, and we’ve rounded up some examples of what you might encounter in the table below.

Mortgage Lender Product Transfer Conditions
Halifax Allow product transfers before or after a current deal expires
TSB/Lloyds Transfers available, but they cannot be done online
Nationwide Transfers available through brokers or their own in-house advisors
Santander Can transfer within four months of current deal coming to an end
Accord Can only transfer when current deal has ended
Natwest Uses in-house advisors for transfers
Birmingham Midshires No fees on product transfers
Aldermore No new credit or affordability checks
Yorkshire Building Society Lets customers reserve a new deal for up to 120 days
Barclays Offers exclusive rates to existing customers

As you can see, some of the above lenders do offer perks to existing customers, but even with that factored in, there’s no guarantee it’s the very best deal for you.

Speaking to a mortgage broker before agreeing to a product transfer really is a no-brainer, since your first consultation with them will be free with no-obligation to process. In other words, it will cost you nothing to find out whether there is a superior remortgage available.

Key takeaways from this guide

  • 01

    Check the whole market before agreeing to a product transfer

    There’s no guarantee that the remortgage deal your current lender is offering is the best one on the market, so be sure to shop around before agreeing to a product transfer with them.
  • 02

    Using a broker is the best way to search the market:

    Any mortgage broker worth their salt has whole-of-market access, which means that they can give you access to every remortgage deal you qualify for, including ones with niche lenders you’ve never heard of and exclusive mortgage products that can only be accessed through a broker.
  • 03

    We can match you with your ideal broker:

    There are brokers who specialise in remortgages and their knowledge and expertise is the key to getting the best deal. We offer a free broker-matching service that can pair you with a remortgage advisor based on their track record helping customers just like you save money while refinancing.

FAQs

Do product transfers involve a credit check?

Not always. If the lender is confident that your circumstances are unchanged, some will forgo credit checks on a straightforward product transfer. But if you were to inform them that there have been significant changes to your credit report, they might assess you again.

If you are applying for a product transfer to borrow more money on your mortgage, the chances of the mortgage lender checking your credit file are higher.

Can I do a product transfer if I used Help to Buy?

Yes. It’s possible to carry out a product transfer if you took out your original mortgage through the Help to Buy scheme.

Help to Buy remortgages, whether that’s a product transfer with your current mortgage lender or a refinancing deal with a new one, aren’t really any different to standard remortgages. Your equity loan will remain in place when the new mortgage agreement begins.

Call us today on 0808 189 2301 or make an enquiry and we’ll introduce you to a remortgage broker who specialises in cases just like yours. We won’t charge a fee and there’s no obligation to act on the advice you’re given.

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About the author

Pete, an expert in all things mortgages, cut his teeth right in the middle of the credit crunch. With plenty of people needing help and few mortgage providers lending, Pete found great success in going the extra mile to find mortgages for people whom many others considered lost causes. The experience he gained, coupled with his love of helping people reach their goals, led him to establish Online Mortgage Advisor, with one clear vision – to help as many customers as possible get the right advice, regardless of need or background.

Pete’s presence in the industry as the ‘go-to’ for specialist finance continues to grow, and he is regularly cited in and writes for both local and national press, as well as trade publications, with a regular column in Mortgage Introducer and being the exclusive mortgage expert for LOVEMoney. Pete also writes for OMA of course!

Read more about Pete

Pete Mugleston

Mortgage Advisor, MD

FCA disclaimer

*Based on our research, the content contained in this article is accurate as of the most recent time of writing. Lender criteria and policies change regularly so speak to one of the advisors we work with to confirm the most accurate up to date information. The information on the site is not tailored advice to each individual reader, and as such does not constitute financial advice. All advisors working with us are fully qualified to provide mortgage advice and work only for firms who are authorised and regulated by the Financial Conduct Authority. They will offer any advice specific to you and your needs.

Some types of buy to let mortgages are not regulated by the FCA. Think carefully before securing other debts against your home. As a mortgage is secured against your home, it may be repossessed if you do not keep up with repayments on your mortgage. Equity released from your home will also be secured against it.

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