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What is a mortgage product transfer? | YBS
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.
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.
