Remortgage vs Product Transfer: Which Deal Is Best for You?

Updated: 4 November 2025

You can often change your mortgage deal without remortgaging by doing a product transfer, which means switching to a new rate with your current lender.

This route is usually quicker, there is often no legal work, and some lenders may not require a full affordability assessment if you are not increasing borrowing.

According to the FCA Mortgage Charter, many lenders allow you to lock in a new deal up to 6 months before your current fix ends, and you may be able to request a better like‑for‑like rate if one becomes available before your new deal starts. If you do nothing, you are likely to roll onto a Standard Variable Rate, which is typically much higher than introductory fixes.

At Manor Mortgages Direct, we do not typically charge a fee for product transfers. We also lock your rate as soon as your transfer window opens to help protect you from rises, and we track rates daily using specialist software so you can take advantage of reductions where your lender allows a switch‑down before completion.

This can make a meaningful difference, especially in a shifting rate environment. If your goals include borrowing more or changing your term, a full remortgage may still be better value. Call us on 01275 399299 and we will outline both options clearly so you can decide with confidence.

Some lenders do not offer Product Transfer directly to customers - you must go through a broker (we can help in these scenarios). These may include: Precise Mortgages, BM Solutions, Accord Mortgages, Foundation Home Loans, Fleet Mortgages, Bluestone Mortgages, The Mortgage Lender, Pepper Money, Together Money.

Written by Ben Stephenson, CeMAP‑qualified Mortgage Broker, and reviewed by Mortgage Experts.

Manor Mortgages Direct is FCA authorised (496907), has been in business for nearly 30 years, and is highly positively reviewed, 4.9 rated on Google. We have helped thousands successfully secure the right mortgage. Bristol based, helping clients nationwide.

Table of contents

• What is a product transfer and how does it work?

• When does a product transfer beat a full remortgage?

• When might a remortgage be better value?

• How much can a product transfer cost, and what fees apply?

• Exactly when should I lock a new rate, and can I switch down later?

• What checks are done, will there be a new affordability or valuation?

• What if I need to borrow more or change my term?

• What happens if I do nothing and drop onto the SVR?

• Buy‑to‑let owners, what is different for you?

• Step‑by‑step timeline for a smooth product transfer

• Case study, a real‑world saving

• Expert tips and common mistakes to avoid

• Myth vs reality

• FAQs

• Glossary

• How brokers add value in this scenario

• Reader’s checklist, questions to ask your lender or broker

What is a product transfer and how does it work?

A product transfer is a new deal with your existing lender. Your mortgage account stays where it is, but the interest rate and product changes. In many cases there is no conveyancing, and your lender already holds the title, so the change is administrative rather than legal. Product transfers can be available several months before your current deal ends, letting you line up your next rate in advance.

Key points

• You remain with your current lender, often making the process simpler and quicker than a full remortgage.

• If you are not increasing borrowing, some lenders may not require a full affordability assessment. This is particularly helpful if your income profile has changed since you last applied.

• You usually choose from the rates your lender offers to existing customers. You will not see the whole market.

According to consumer advice bodies, the above approach is common and designed to help borrowers avoid falling onto expensive follow‑on rates while keeping friction low.

When does a product transfer beat a full remortgage?

Choose a product transfer when your priority is speed, simplicity, and certainty.

Strong reasons to prefer a product transfer

• You are inside your lender’s product transfer window. Many lenders allow you to line up a new rate up to six months before your fix ends, which is valuable in a choppy market.

• You want to avoid legal fees and minimise paperwork.

• Your income has reduced or become less straightforward since your last application, so avoiding a full affordability re‑assessment may be helpful.

• Your loan‑to‑value has not improved much, so a market‑wide switch is unlikely to yield a significantly lower rate.

• You value speed. Product transfers can complete in days rather than weeks when documentation is simple.

Tip: rolling onto a high SVR can cost you dearly. Consumer snapshots show average SVRs well above typical fixed rates in late 2025, so delaying can be expensive, especially on larger balances.

When might a remortgage be better value?

There are times when a full market switch is the right call.

Consider a remortgage if

• You want the lowest possible rate and incentives across the market, not just your current lender’s range.

• Your loan‑to‑value has improved meaningfully due to overpayments or a higher house value, so you now qualify for cheaper LTV bands elsewhere.

• You need to change the mortgage fundamentals, for example moving from interest only to repayment, consolidating separate sub‑accounts, adding or removing a borrower, or switching product type where your current lender’s options are limited.

• You want to borrow more for home improvements or debt consolidation and the best way to do that is a new lender with sharper pricing and criteria.

• Your current lender’s retention rates are uncompetitive against the wider market once fees are factored in.

Balanced view: we will price both routes side by side. Product transfers are often cheaper to execute, but a new lender can sometimes be meaningfully cheaper overall even after valuation and legal costs.

How much can a product transfer cost, and what fees apply?

Typical cost items to check:

• Product fee. Many lenders price a lower rate with a fee and a higher rate with no fee. On smaller balances a no‑fee option may be better value.

• Broker fee. At Manor Mortgages Direct we do not charge for product transfers.

• Early Repayment Charge, if you switch early. If your current deal has not ended, an ERC may apply, commonly between 1 percent and 5 percent of the balance during the initial period.

• Booking or completion fees, sometimes refundable if the product is not taken up, sometimes not.

Reality check: early repayments and ERCs vary by lender and contract. Always read your original offer and Key Facts Illustration to confirm any penalties and overpayment allowances.

Exactly when should I lock a new rate, and can I switch down later?

Timing matters. Under the Mortgage Charter commitments, lenders commonly allow you to secure a new deal up to six months before your current rate ends. Many also allow you to request a better like‑for‑like rate if one is available before your new deal starts.

This creates a simple playbook:

1. Lock early as soon as your product transfer window opens.

2. Track daily for reductions until your start date.

3. Switch down where your lender allows it.

At Manor Mortgages Direct we lock your rate promptly, then our rate‑tracking software alerts us to reductions so we can secure the lower rate where permitted. This helps avoid paying more than you need if rates improve before your new product begins.

What checks are done, will there be a new affordability or valuation?

• Affordability. For a like‑for‑like product transfer with no increase in borrowing, some lenders may not carry out a full affordability check. If you increase your loan, change the term materially, or switch product type, expect a full assessment.

• Valuation. Many lenders use automated valuations, especially where the balance and LTV are unchanged. A fresh physical valuation may be required if you are moving LTV bands or borrowing more.

• Credit searches. Lenders can perform a soft or hard check. Product transfers typically involve minimal credit footprint, but it varies.

Good practice: even if a full re‑assessment is not required, you should still be confident you can afford the payments if rates rise again in future.

What if I need to borrow more or change my term?

You usually have three main routes:

• Further advance with your current lender, often alongside a product transfer. This creates a second sub‑account at a different rate.

• Full remortgage to a new lender for a single combined loan.

• Blend and extend options, where available, to change the term or structure.

Each has trade‑offs on price, underwriting, fees, and flexibility. We will model the total cost over your chosen time horizon, not just the headline rate.

What happens if I do nothing and drop onto the SVR?

If you take no action, you will roll to your lender’s Standard Variable Rate, which is usually well above new business fixed rates. That difference can add hundreds per month to repayments on average balances. This is the classic “do nothing” trap that quietly erodes household budgets.

Insight: missing your window or overlooking one clause in your offer could cost you your lower rate for years. Diarise your expiry date and set reminders 7, 5, and 3 months before.

Buy‑to‑let owners, what is different for you?

• Product transfers are widely available in buy‑to‑let, and can be particularly useful where Interest Coverage Ratio constraints make external remortgaging tougher.

• A transfer can reduce payment shock, improve cash flow, and may avoid legal and valuation delays.

• If you need to raise capital, a remortgage to a specialist intermediary‑only lender such as Pepper Money, Precise Mortgages, United Trust Bank, Foundation Home Loans, or Tandem Bank may be considered, subject to criteria. Availability varies, and nothing here implies acceptance.

Step‑by‑step timeline for a smooth product transfer

Six months out

• Ask your lender or broker when your product transfer window opens.

• Get an indicative quote for a like‑for‑like transfer and request comparisons for context.

Five to four months out

• Lock the best available transfer product that fits your plans.

• Confirm any fees, the start date, and whether switch‑down is allowed if rates fall before completion.

Three to one month out

• Keep tracking. If a lower like‑for‑like rate appears, ask to re‑book.

• If you decide to remortgage instead, allow time for valuation and legal work.

Final week

• Double‑check your direct debit and new payment amount.

• Store your offer letter. Note the new overpayment allowances.

Case study, real‑world saving

Profile: £245,000 balance, 63 percent LTV, two borrowers, employment has become part‑time since last application. Two months to go on a five‑year fix.

Options presented:

• Product transfer at 4.49 percent with £0 fee, starting immediately after the fixed period.

• Market remortgage at 4.39 percent with £999 fee, free valuation and legal package, but requires full affordability.

Advice outcome: the clients locked the product transfer, then we tracked daily. Three weeks before the start date, the lender released 4.39 percent no‑fee for the same LTV. We switched the case to the lower rate without legal work or delay. The clients saved the fee and reduced repayments versus the original transfer quote. This is typical of the value in locking early, then switching down where permitted. Illustrative only, not a guarantee. Pricing and policies change frequently.

Expert tips and common mistakes to avoid

Do

• Lock early, then switch down if your lender allows it.

• Ask if fees are refundable if a better rate appears later.

• Check whether a soft or hard credit check will be used.

• Confirm overpayment rules on your new deal.

• Time any further advance so funds arrive when needed.

Avoid

• Letting your deal expire and falling onto the SVR.

• Fixating on the headline rate and ignoring fees and incentives.

• Changing your term or increasing borrowing without modelling the total cost and underwriting impact.

• Assuming a product transfer is always best. Compare to the wider market.

Myth vs reality

Myth: “Product transfers never involve credit checks.”

Reality: Some lenders perform checks even for like‑for‑like switches. It may be a soft search.

Myth: “You cannot change anything on a transfer.”

Reality: You can often choose different fixed periods and sometimes minor term adjustments, but bigger changes typically need a full application.

Myth: “I must wait until the last month.”

Reality: Many lenders accept applications up to six months early, which helps you avoid SVR drift and gives time to switch down if rates fall.

FAQs

Can I change my mortgage deal without remortgaging?

Yes, by doing a product transfer with your current lender. It is often faster and simpler than moving lender.

Does a product transfer affect my credit score?

It may involve a soft or hard search depending on the lender. Like‑for‑like transfers usually have minimal impact, but ask first.

Will my payments change before my current fix ends?

Your new product usually starts when the old one ends. If you ask it to start sooner, check for ERCs.

Can I borrow more with a product transfer?

If you need additional borrowing, lenders usually treat it as a further advance with a fresh assessment, or you can remortgage to a new lender.

What if rates fall after I lock?

Many lenders allow a switch‑down to a lower like‑for‑like rate before your new product begins. That is why rate tracking matters.

How long does a product transfer take?

Simple transfers can be arranged in days once you have chosen the product. Allow longer if you are changing term, structure, or borrowing more.

Is this different for buy‑to‑let?

The process is similar, but rental stress tests drive pricing and eligibility. Transfers can help manage payments where remortgaging is constrained.

Glossary

• Product transfer: Switch to a new rate with the same lender.

• Remortgage: Move your mortgage to a new lender.

• SVR: Standard Variable Rate, your lender’s default rate after your deal ends.

• ERC: Early Repayment Charge, a penalty for leaving a deal before it ends.

• Further advance: Additional borrowing from your current lender.

• LTV: Loan to value, your loan as a percentage of property value.

How brokers add value in this scenario

• Market comparison, not just your lender’s retention shelf.

• Rate‑tracking between application and start date, to capture reductions where rules allow.

• Structuring advice if you need a further advance, debt consolidation, or term change.

• Policy insight on criteria and underwriting that can save time and stress.

• Outcome‑focused advice, aligned to the FCA’s Consumer Duty expectations on fair value and suitable support.

Reader’s checklist, questions to ask

• When does my product transfer window open?

• If I lock now and rates fall, can I switch down without a fee?

• Will you run a soft or hard credit check?

• What is the total cost over the next 2 to 5 years including all fees?

• If I need extra funds, is a further advance or remortgage better value?

• What is my lender’s SVR and what would my payment be on it?

• How much can I overpay without penalty?