What a product transfer is
A product transfer means switching to a new deal with your existing lender when your current deal ends, without moving your mortgage elsewhere. It's often quicker and simpler than a full remortgage, and typically doesn't require a new affordability assessment or legal work.
What a remortgage involves
A remortgage means moving your mortgage to a new lender entirely, which requires a fresh application, a new affordability assessment based on your current circumstances, and usually legal work (though often at reduced or no cost as part of a switching incentive) to handle the change of lender.
The trade-off
| Product transfer | Remortgage | |
|---|---|---|
| Speed and simplicity | Usually faster, less paperwork | More involved, takes longer |
| New affordability check | Usually not required | Required — a change in circumstances could affect what's offered |
| Access to the whole market | Limited to your existing lender's current deals | Full market comparison possible |
| Potential savings | May miss a better deal elsewhere | Can capture the most competitive rate available |
When a product transfer makes sense
If your circumstances have changed in a way that might make a new lender's affordability check difficult to pass (reduced income, new debts, a lower credit score, or having become self-employed), staying with your existing lender via a product transfer avoids that check entirely, even if the rate isn't the very best on the market.
When a full remortgage makes sense
If your circumstances remain strong and you have time to shop around, comparing the whole market via a remortgage — ideally with the help of a mortgage broker — often reveals meaningfully better deals than simply accepting your existing lender's retention offer.
Key takeaways
- A product transfer stays with your existing lender, usually without a new affordability check.
- A remortgage moves to a new lender and typically requires a full fresh application.
- Product transfers suit changed circumstances that might complicate a new application elsewhere.
- Full remortgaging usually gives access to more competitive rates if your circumstances remain strong.