Product Transfer – a simpler option than a full remortgage

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Home » Product Transfer – a simpler option than a full remortgage

Product Transfer vs Remortgage

Edited: February 2026

When your mortgage deal is coming to an end, you will usually face a choice; complete a product transfer or remortgage to a new lender.

In some situations, a product transfer is the simpler and more efficient option. In others, a full remortgage may offer better long term value.

Understanding the difference matters. The right decision can save time, reduce costs, and improve cash flow.

What Is a Product Transfer?

A product transfer allows you to switch to a new mortgage deal with your existing lender, rather than moving your mortgage to a different provider.

When a fixed rate ends, most lenders automatically move borrowers onto their Standard Variable Rate (SVR). This rate is typically much higher than necessary and can significantly increase monthly repayments.

A product transfer lets you avoid that increase by securing a new deal before the existing one expires.

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

You can read more about how product transfers work here

How is a product transfer different to a remortgage?

With a product transfer you’re switching to a new product with your existing lender. Meanwhile, a remortgage is moving your mortgage to a new lender. You are taking out a whole new mortgage and using it to repay your current deal.

How does a product transfer work?

A product transfer is generally faster and simpler than a full remortgage. It’s important to compare various options to help you decide whether a product transfer is the most sensible approach. Your existing mortgage lender will offer various different products, but they may not be the most competitive in the marketplace.

If you choose to stay with your current lender, there won’t be any need for an affordability assessment. The lender may do a desktop valuation of your property to see if your Loan to Value ratio has changed. No credit scores, payslips or bank statements are needed because the lender already knows you and your payment record.

What are the advantages and disadvantages of a product transfer?

The main advantages are speed and ease. There’s no legal work required for a product transfer, no affordability checks or significant property valuations.

The main disadvantage is that you’re just looking at one lender, so you may not get the cheapest interest rates on the market. A broker can give you a sense of whether a mortgage product 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.

When might you choose a product transfer instead of a remortgage?

There are various reasons to do a product transfer rather than a remortgage. The most common is where you’ve had a change in circumstances that could make it more difficult to have your application accepted by a new lender.

If you’re newly Self-Employed or you’ve had a drop in income, you might not pass the affordability criteria and checks with a new bank or building society.

Also, a product transfer can be helpful if time is an issue and you want to switch fast.

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 can GPS Financial help?

We’re experienced mortgage brokers who are here to support you at every step. We work with clients in all areas, from First Time Buyers seeking an Agreement in Principle, through to long standing clients who rely on us to ensure they’re on a competitive mortgage deal.

We’re fully authorised and regulated by the Financial Conduct Authority to help you manage your mortgage and protection needs.

Product Transfer vs Remortgage; What Is the Difference?

With a product transfer, you remain with your current lender and choose from the products they offer.

A remortgage involves taking out a new mortgage with a different lender and using it to repay your existing loan. Because it is a new application, the process usually includes:

Full underwriting
Affordability assessments
Legal work

This difference in process is why product transfers are often quicker and involve less administration.

How a Product Transfer Works

In most cases, a product transfer is significantly faster than a remortgage.

Because the lender already holds your mortgage, they usually do not require a full affordability assessment. Instead, they may carry out a desktop valuation to confirm whether your loan to value has changed.

There is typically no need for:

Credit checks
Payslips
Bank statements

Your payment history is already known, which helps streamline the process.

That said, it is still important to compare your options carefully. Your existing lender may not always offer the most competitive rates available in the wider market.

Advantages and Limitations of a Product Transfer

The main advantages of a product transfer are speed and simplicity.

In most cases:

No legal work is required
No full affordability assessment
No physical property valuation

This makes it an attractive option for borrowers who want to avoid delays and unnecessary complexity.

The limitation is choice. Because you are only considering products from one lender, you may miss out on more competitive rates elsewhere.

This is where professional advice adds value. A broker can assess whether a product transfer represents good value or whether a remortgage would be more suitable.

Rates and Fees; What Affects the Cost?

Mortgage rates are closely linked to your loan to value ratio. If your property has increased in value or you have reduced the outstanding balance, you may qualify for lower rates.

Fees vary by lender and product:

Some deals offer lower rates with higher product fees
Others have no fee but slightly higher rates

The right option depends on:

The size of the loan
How long you plan to keep the product
Your wider financial objectives

You can explore broader refinancing considerations on our Remortgage page

When a Product Transfer May Be the Better Option

A product transfer can be particularly useful where circumstances have changed since the original mortgage was taken out.

For example:

You have become self employed
Your income has reduced
Your financial structure has changed

In these situations, meeting a new lender’s affordability criteria may be more difficult. Staying with your existing lender can reduce risk and complexity.

Product transfers are also useful where time is limited and you want to avoid being moved onto an expensive variable rate.

What to Consider Before Switching

Before proceeding with a product transfer or remortgage, it is essential to check whether early repayment charges apply.

These charges are common and can be as high as 5% of the outstanding mortgage balance. Importantly, early repayment charges usually apply to product transfers as well.

For this reason, it often makes sense to wait until your current deal is close to ending before switching.

A mortgage adviser can review the details, confirm the timing, and help you choose the most appropriate option for your situation.

For independent guidance on mortgage regulation, the Financial Conduct Authority provides useful information

Speak to GPS Financial

If your mortgage deal is coming to an end and you are deciding between a product transfer and a remortgage, speak to the team at GPS Financial.

We will review your existing mortgage, assess your options, and explain the most suitable route clearly, without pressure or jargon.

Call 029 2267 7707 or visit our Contact page to arrange a no obligation discussion