Product Transfer – a simpler option than a full remortgage

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Product Transfer vs Remortgage

Edited: March 2026

When your current mortgage deal is approaching its end, you will normally have two options; complete a product transfer with your existing lender or remortgage to a new lender.

In some situations, a product transfer is the quickest and simplest solution. In others, moving to a new lender may provide better rates or allow you to release additional funds.

Understanding the difference between the two options is important. The right decision can help reduce costs, avoid unnecessary fees, and ensure the mortgage continues to suit your circumstances.

What Is a Product Transfer?

A product transfer allows you to move onto a new mortgage deal with your existing lender instead of switching your mortgage to a different provider.

When a fixed rate mortgage ends, most lenders automatically move borrowers onto their Standard Variable Rate (SVR). This rate is usually higher than the previous fixed deal and can increase monthly repayments.

A product transfer allows you to secure a new mortgage deal with the same lender before the existing rate ends, helping you avoid moving onto the lender’s SVR.

Because the mortgage remains with the same lender, the process is often quicker than a full remortgage and may involve fewer checks.

Product transfers are available on many mortgage types, including Buy to Let mortgages, subject to the lender’s criteria.

Should You Choose a Product Transfer or a Remortgage?

The right option depends on your circumstances, your current mortgage deal, and what you want to achieve.

A product transfer may be suitable if you want a quick and straightforward switch with minimal paperwork. It can also be helpful if your circumstances have changed and passing affordability checks with a new lender may be more difficult.

A remortgage may be more suitable if you want to access the wider mortgage market. In some cases this can provide lower interest rates, allow you to release equity from your property, or move to a lender with products better suited to your situation.

Because mortgage deals change regularly, it is often worth reviewing both options before deciding. Comparing the lender’s product transfer offer with remortgage options can help ensure you are not missing a more competitive deal elsewhere.

A broker can review both routes and help you understand the costs, benefits, and practical differences before you decide how to proceed.

How is a product transfer different to a remortgage?

A product transfer means switching to a new mortgage deal with your existing lender.

A remortgage means moving your mortgage to a different lender. A new mortgage is arranged with the new lender and the funds are used to repay the existing mortgage.

Both options allow you to replace an expiring mortgage deal. The main difference is whether you stay with your current lender or move to a new one.

How does a product transfer work?

A product transfer is usually quicker and simpler than arranging a full remortgage.

Because the mortgage remains with the same lender, the process is often more straightforward. In many cases there is no affordability assessment, and lenders usually do not require payslips, bank statements, or full credit checks.

Some lenders may carry out a desktop valuation to confirm the property value and the current Loan to Value ratio.

Although product transfers are convenient, it is still important to compare options. Your existing lender will offer a range of deals, but these may not always be the most competitive available in the wider mortgage market.

What are the advantages and disadvantages of a product transfer?

Advantages

• The process is usually quicker than a remortgage
• There is normally no legal work required
• Affordability checks are often limited or not required
• Fewer documents are usually needed

Disadvantages

• You are restricted to the deals offered by your current lender
• Other lenders may offer more competitive rates or products

A mortgage broker can review the wider market and help determine whether the lender’s product transfer offer is competitive.

What are the rates and fees for product transfers?

Mortgage rates are always driven by how much equity you have in your property. If your house price has gone up or you’ve paid off a decent amount of your loan, you’ve then got more equity in your house and are a more attractive customer. The lower your Loan to Value ratio, the better the mortgage rates.

Fees vary between lenders: some offer cheaper rates with higher product fees, while others have no fee and slightly higher rates. The deal to choose will depend on your specific situation and what you’re looking for in your mortgage.

Rates and Fees for Product Transfers

Mortgage rates are largely influenced by the Loan to Value ratio, which is the size of the mortgage compared to the property value.

If your property has increased in value or you have repaid part of the loan, your Loan to Value ratio may improve. Lower Loan to Value levels often qualify for more competitive mortgage deals.

Product fees vary between lenders. Some mortgage products offer lower interest rates with a higher arrangement fee, while others offer slightly higher rates with little or no fee. The most suitable option will depend on your priorities and financial circumstances.

When Might a Product Transfer Be the Better Option?

There are situations where a product transfer may be more suitable than moving to a new lender.

For example, if your circumstances have recently changed, passing the affordability assessment for a new mortgage may be more difficult.

This can sometimes apply if you are newly self employed, have experienced a change in income, or have circumstances that make a full remortgage less straightforward.

A product transfer can also be useful if time is limited and you want to secure a new deal quickly before your current rate expires.

What Should You Consider Before Switching?

Before completing a product transfer or remortgage, it is important to check whether your current mortgage includes an early repayment charge.

These charges apply if you change your mortgage before the end of the existing deal period. Depending on the lender and mortgage terms, the charge can sometimes be as high as 5% of the outstanding balance.

A broker can review your current mortgage, explain the costs involved, and help determine the most suitable timing for switching deals.

What do I need to consider with a product transfer?

If you’re considering a remortgage or product transfer before the end of your current mortgage deal, it’s important to check whether you would face an early repayment charge. These are common with mortgages and can reach 5% of the amount borrowed on your mortgage.

The early repayment fee will usually apply even with a product transfer, so you should avoid switching until the end of the term if possible. Your mortgage advisor can look at the details and recommend the most suitable approach in your situation.

How GPS Financial Can Help

At GPS Financial, we help clients review their mortgage options before their current deal expires.

We compare product transfer offers from your existing lender alongside remortgage options across the wider market. This helps ensure you understand the full range of choices available before making a decision.

Our advisers support clients across a wide range of situations, from First Time Buyers seeking an Agreement in Principle to existing homeowners and landlords reviewing their mortgage arrangements.