A product transfer keeps your mortgage with the same lender on a new deal. A remortgage moves the borrowing to a different lender. Neither route is automatically better: compare the total cost, eligibility, timing and what you need the mortgage to do.
When a product transfer may suit you
- You want a straightforward rate switch with less paperwork
- Your income or credit position has changed and a new affordability assessment may be difficult
- Your current lender has a competitive deal after fees are included
- You do not need to change the mortgage structure or borrow substantially more
When a remortgage may be worth exploring
- Another lender offers a lower total cost after product, valuation, legal and exit fees
- You need to change the term, repayment basis or people named on the mortgage
- You want to release equity, subject to affordability and suitability
- A lower LTV band opens up a wider range of products
Compare total cost, not only the rate
A lower rate with a large fee can cost more than a slightly higher fee-free product. The right comparison includes monthly payments, fees added to the loan, incentives, early repayment charges and the balance expected at the end of the deal.
When should you compare the options?
Start around six months before your current deal ends. This gives time to review your existing lender's offers and the wider market without drifting onto a standard variable rate. Read when to remortgage or explore remortgage advice.
Expert tip: Keep both routes open until you have compared like for like. Convenience is valuable, but it should not hide a meaningful difference in total cost.
This guide is general information, not personal advice. Figures are correct at the time of updating and rules can change. Your home may be repossessed if you do not keep up repayments on your mortgage.
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