What is a mortgage product transfer? | YBS
Reading time 4 minutes
At a glance:
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.
You can do this when your current mortgage deal is ending.
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.
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. It is not financial advice.
For help with money issues, try MoneyHelper.
For help with money issues, try MoneyHelper.
