What is a mortgage product transfer

fa-homebuyers ["Mortgages Explained"]
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When you remortgage, you get a new mortgage deal with a new lender. If you want a new deal with your current lender, this is called a product transfer. 

What is a mortgage product transfer?

When your current mortgage deal is coming to an end, you may want to move to a new deal with the same lender. 

This can be a simple process, as long as your finances are the same and the value of your home hasn’t dropped by a lot. You can usually perform a product transfer online or over the phone.

How does a mortgage product transfer work?

When you’re coming to the end of your current mortgage deal, you’ll have a choice:
Remortgage – get a new mortgage deal with a new lender.
Product transfer – get a new deal with your current lender.
Do nothing – stay on your lender’s Standard Variable Rate (SVR).

Benefits of a product transfer

It gives you a chance to look at your lender’s latest mortgage deals.
It’s a simple process as all you’re doing is moving to another product. 
There are no legal fees.
You may not need a valuation.
If your situation is the same, you may not need any affordability checks.
The SVR may have a higher interest rate than you had before.

Product transfer considerations

You’re limited to what your current lender has to offer.
While a product transfer costs less in up-front fees, the interest rates offered by them could be higher.
If you’ve plans for your home – like an extension – moving lenders could be a chance to borrow more.
The content on this page is for reference and is not financial advice.
For impartial financial advice, try MoneyHelper.