What's the Difference?
A product transfer means switching to a new rate with your current lender. A remortgage means moving your mortgage to a different lender entirely. Both achieve the same goal - getting you a new deal before you fall onto the SVR.
Product Transfer Advantages
Product transfers are quick, simple, and often involve minimal paperwork. Your current lender already knows you, so they don't need to reassess everything from scratch.
Benefits of product transfers:
- Usually no affordability assessment required
- Minimal paperwork
- No legal fees or valuation needed
- Can be done in days rather than weeks
- Good option if your circumstances have changed for the worse
Remortgage Advantages
Switching to a new lender opens up the whole market. You might find a significantly better rate, especially if your LTV has improved or if other lenders are being more competitive.
Benefits of remortgaging:
- Access to rates from 90+ lenders
- May find a much better rate
- Opportunity to borrow more (release equity)
- Free legal work often included
- Free valuation usually included
Which Should You Choose?
It depends on your situation. If your circumstances have changed significantly (income dropped, credit issues), a product transfer might be your best or only option. If your situation has improved and you want the best possible rate, remortgaging is worth exploring.
You don't have to choose one or the other initially. We'll compare your current lender's product transfer rates against the whole market and tell you which option saves you the most money.