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Published on : February 1, 2024 16:24

Should you Remortgage or Arrange a Product Transfer?

If your current mortgage agreement is due to end soon, or you are simply keen to keep your mortgage repayments affordable, making sure that you are getting the best deal is an important decision. 

Regardless of whether you ultimately decide on a product transfer or fully remortgaging your property, getting the best financial advice beforehand will help you secure the right deal for your circumstances.

If you are keen to speak to a mortgage broker right away, our expert team is willing and waiting to hear from you, otherwise take a moment to read on to learn more about the differences between and the main pros and cons of remortgaging and product transfers. 

What is Remortgaging?

A remortgage is the process of replacing your current mortgage with a new deal with a different lender. One of the most popular reasons for homeowners choosing to remortgage is to avoid switching to their lender’s Standard Variable Rate (SVR) once their current fixed-term deal comes to an end.

People can also decide to remortgage their property because they want to increase how much they are borrowing. This can be to unlock funds for property maintenance, paying off debts, or making a significant purchase.

What do you Need to Consider When Remortgaging?

Remortgaging your property is typically more involved than transferring to a new mortgage arrangement with your current lender. This is because you will be entering into an arrangement with a new lender who will need to see proof of your earnings and carry out new credit checks to ensure that you will be able to repay your monthly mortgage repayments.

  • Time – Remortgaging can take between six and 12 weeks, so make sure that you allow plenty of time to arrange a new deal, especially if you are remortgaging at the last minute.
  • Cost – Most lenders will pay your valuation and solicitors fees, but there may sometimes be an application fee to pay depending on your chosen mortgage.
  • Documents – The documents you will need are similar to what you needed when you first secured your mortgage, so make sure you have these to hand.

What are the Advantages of Remortgaging?

Although remortgaging is typically a more involved process than arranging a product transfer, it will enable you to search the market for the best possible deal. If you are working with a mortgage broker, they will be able to compare thousands of mortgage products from across the mortgage marketplace. They will also be able to give you advice on which deal is the best fit for your current circumstances. 

If you would like to learn more about remortgaging you can find our guide here.

What is a Product Transfer?

A product transfer is a way of securing a new mortgage deal with your existing lender. These arrangements will often mean that you transfer over to a new interest rate or one that is fixed for a set period.

What do you Need to Consider with a Mortgage Product Transfer?

The main thing to consider if you are considering a product transfer is whether you will get the best deal by sticking with your current lender. Your existing lender can only tell you about their own rates, and some lenders may even reserve their best rates only for new customers, so you might find that you will get a better deal by shopping around.  Also, a product transfer does not facilitate the option to release further funds if required.

This isn’t always the case, so it’s always worth taking the time to see what rates your current lender can offer and compare them with the wider market. 

If you would like to learn more about deciding between sticking with your current lender or finding a new mortgage provider, you can head our guide here.

What are the Advantages of a Product Transfer?

Staying with your current lender can be a relatively simple way to guarantee some financial stability for a set amount of time.

A product transfer is also typically faster than fully remortgaging your property. This is because when arranging a product transfer your lender will not typically ask for the same proof of income as they did when you first secured your mortgage.

During a product transfer, you will also not be subject to the same hard credit checks as you would be if you were remortgaging your home, which can help to secure a new deal quickly.

Speak to the Experts for the Best Mortgage Advice

Knowing whether remortgaging or arranging a product transfer will help you secure the best mortgage deal will depend on your individual circumstances and doing a fair amount of research into the various mortgage products on offer. 

This is why getting expert mortgage advice before you commit to either option can go such a long way toward securing a mortgage at a competitive rate and keeping your monthly repayments affordable. 

For the best friendly, expert advice contact us today or give us a call on 0161 443 4830.

We’ll take care of the whole remortgaging process, from liaising with lenders right through to the paperwork. 

Related Pages

How to Remortgage | Need to remortgage but time is running out? | Book a Mortgage Appointment 

Your home may be repossessed if you do not keep up repayments on your mortgage.

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