Product Transfer or Remortgage: Which Is Right When Your Deal Ends?
When your mortgage deal comes to an end, you face a choice. You can stay with your existing lender and move onto a new deal, which is known as a product transfer, or you can switch to a different lender entirely through a full remortgage. Both routes have their merits, and the right option depends on your individual circumstances. At Akers Pritchett, our remortgage advisors help clients weigh up both options honestly and make the decision that is genuinely right for them.
What Is a Product Transfer?
A product transfer means switching to a new deal offered by your existing lender without moving your mortgage elsewhere. Because your lender already holds your account and has previously assessed your application, the process is typically quicker and involves significantly less administration than a full remortgage. In many cases there is no requirement for a new valuation and the legal work involved is minimal, making it a straightforward option for borrowers who want a smooth, low-friction switch.
What Is a Full Remortgage?
A full remortgage involves moving your mortgage to a new lender entirely. This means going through a complete application process including credit checks, income verification, and a new property valuation. It takes longer and involves more steps, but it opens up the full market rather than limiting you to the products your current lender is willing to offer. As a whole-of-market broker, Akers Pritchett has access to a wide range of lenders, including exclusive deals not normally available directly, which can make a meaningful difference to the rate you secure.
A full remortgage is also the route to take if you want to release equity, change your mortgage term, or make adjustments that your existing lender cannot accommodate through a product transfer alone.
Which Option Is Right for You?
The right choice depends on several factors. If your current lender is offering a genuinely competitive rate and your circumstances have not changed significantly, a product transfer can be a practical and efficient solution. If the wider market offers better value, or you have goals such as releasing equity or restructuring your mortgage, a full remortgage is likely to serve you better.
One important point to keep in mind is that loyalty to your existing lender does not guarantee the best deal. Lenders do not always reserve their most competitive rates for existing customers. Our team will compare your current lender’s product transfer options against the full market before making any recommendation, so you can be confident you are not leaving value on the table.
Do Not Wait Until Your Deal Has Ended
Whether you are considering a product transfer or a full remortgage, starting the review early is important. We recommend beginning the process around three to six months before your current deal ends. This gives enough time to explore your options properly, complete any necessary steps, and avoid falling onto your lender’s standard variable rate, which is typically less competitive than a new fixed or tracker deal. Get in touch today for a free, no-obligation conversation. We help homeowners across Nottingham, Derby, and Leicester.
Frequently Asked Questions
Is a product transfer quicker than a full remortgage?
Generally, yes. Your existing lender already holds your account details and has previously carried out their own assessment, so the process involves far less administration. A full remortgage requires a new application, income verification, credit checks, and in most cases a new valuation, all of which add time. Our advisors will factor your timeline into their recommendation, particularly if your current deal is ending soon.
Will I need a solicitor for a product transfer?
In most cases, no. Because you are staying with the same lender and remaining in the same property, there is no legal transfer of the mortgage to arrange and conveyancing is not typically required. A full remortgage, by contrast, usually involves solicitors to handle the legal elements of switching providers, which adds to the overall cost and timeline.
Can I increase my borrowing as part of a product transfer?
Some lenders do allow a limited increase in borrowing through a product transfer, but the options are generally more restricted than through a full remortgage. If releasing equity, extending the term, or making more significant changes to your mortgage are part of your plans, a full remortgage is more likely to give you the flexibility you need. Our advisors will identify which route best fits your circumstances and goals.
Your home may be repossessed if you do not keep up repayments on your mortgage.
You may have to pay an early repayment charge to your existing lender if you remortgage.