Should you Product Transfer or Remortgage?
- Ben Stephenson
- Dec 16, 2024
- 6 min read
Updated: Oct 24
When your current mortgage deal comes to an end, you’ll usually face a choice: stay with your existing lender and do a product transfer, or switch to a new lender through a remortgage.
It sounds simple, but the decision can significantly affect how much you pay, both monthly and over the life of your mortgage. This guide explains the difference between product transfers and remortgages, their pros and cons, and how to decide which route gives you the best outcome.
Last Updated: 24 October 2025
What Is a Product Transfer?
A product transfer (sometimes called a “rate switch”) is when you stay with your current lender, but move onto a new mortgage product once your existing deal expires.
You keep the same balance, the same lender, and usually the same term, you’re just changing the rate.
For example, if your fixed rate ends in June and your lender offers a new 2-year fix, you can choose to switch directly with them without applying elsewhere.
Common reasons to choose a product transfer:
You want a quick, easy process with minimal paperwork.
You don’t want to undergo a new credit check or property valuation.
You’re happy with your current lender and rate offer.
In essence, product transfers are about simplicity and speed, they’re the “path of least resistance” when your deal ends.
What Is a Remortgage?
A remortgage is when you move your mortgage to a different lender (or change terms significantly with your current one). You effectively take out a new mortgage that replaces your old deal, potentially with better rates, more flexibility, or access to additional borrowing.
Remortgaging usually involves:
A new credit check and affordability assessment
A fresh property valuation
Legal work to complete the transfer of your loan
This process is slightly more involved, but it can save you thousands if you find a better rate elsewhere.
Product Transfer vs Remortgage: What’s the Difference?
When your mortgage deal ends, you usually have two options:
stay with your current lender through a product transfer,
or move to a new lender via a remortgage.
Here’s how the two compare in simple terms:
Lender
A product transfer means you stay with your existing lender, keeping your current mortgage in place but switching to a new rate.
A remortgage, on the other hand, involves moving to a new lender, replacing your current loan entirely.
Credit Check
With a product transfer, your lender normally won’t run a new credit check.
A remortgage always includes a full credit and affordability assessment, as it’s treated like a new mortgage.
Property Valuation
Most product transfers don’t require a new valuation because your lender already holds your details.
Remortgages usually include a fresh valuation, which can be a benefit if your property value has risen, helping you qualify for a lower loan-to-value (LTV) band and potentially a better rate.
Speed
A product transfer is typically fast and straightforward, often completed in just a few days.
A remortgage can take four to eight weeks, depending on the lender and whether legal work is required.
Fees
Product transfers are generally fee-free or low cost, there’s no solicitor or valuation fee, and some lenders waive the product fee.
Remortgages may involve arrangement, legal, or valuation fees, though many lenders offer “free legals” or cashback deals to offset them.
Access to the Best Rates
When you do a product transfer, you’re limited to the rates your current lender offers existing customers.
With a remortgage, you gain access to the full mortgage market, which means more competition, and often better rates or features.
Overall Suitability
A product transfer suits homeowners who value speed, simplicity, and minimal paperwork.
A remortgage is best for those seeking maximum choice, potentially lower rates, and long-term financial savings.
When Is a Product Transfer the Better Choice?
A product transfer might be ideal if:
1. You need to act quickly
If your fixed deal ends soon and you risk rolling onto your lender’s Standard Variable Rate (SVR), a product transfer can be arranged in days.
2. Your financial situation has changed
If your income has dropped, your credit score has dipped, or you’ve had life changes, staying with your current lender avoids another full affordability check.
3. You’re happy with your lender’s offer
Sometimes, existing lenders offer competitive retention rates to keep customers. If their deal matches or beats the market average, staying can be the smart move.
4. You have little equity or a high loan-to-value (LTV)
If your property value hasn’t risen enough to qualify for lower LTV deals elsewhere, sticking with your current lender could be more straightforward.
When a Remortgage Might Be the Better Option
A remortgage can be a powerful financial move when you:
1. Want access to the entire market
Switching lenders opens up the whole mortgage market, giving you access to potentially better rates or terms not available through your current provider.
2. Need to borrow more
If you’re planning home improvements, debt consolidation, or need to release equity, remortgaging gives you options to increase your loan amount.
3. Have built more equity in your property
If your property value has increased or your balance has dropped, you may now qualify for a lower LTV band, unlocking much cheaper rates with other lenders.
4. Want more flexible features
Some remortgages include benefits like overpayment facilities, offset accounts, or shorter terms, helping you save on long-term interest.
The Hidden Costs & Savings
Both options can save or cost you money depending on your timing and lender:
Product Transfer Costs
Often no legal or valuation fees
Sometimes no product fee if your lender wants to retain you
Easy to complete online or over the phone
Remortgage Costs
May include valuation and legal fees (though many lenders offer “free legals”)
Arrangement fees might apply
Can involve more admin time
But despite slightly higher upfront costs, remortgaging often produces long-term savings, sometimes thousands of pounds over the fixed term.
Common Misconceptions
Myth 1: Product transfers are always cheaper.
Not true, some lenders reserve their best rates for new customers. Always compare your lender’s retention offer with what’s available elsewhere.
Myth 2: Remortgaging takes months.
Modern remortgages can be processed in 2-4 weeks, especially with digital conveyancing and automated valuations.
Myth 3: Staying loyal always pays.
Loyalty doesn’t always equal reward. Your current lender may not offer their most competitive rate unless prompted.
How Manor Mortgages Helps You Decide
As an independent broker, Manor Mortgages gives you both perspectives, not just one side of the story.
We’ll:
Review your current mortgage and deal expiry
Check your lender’s product transfer offers
Compare market-wide remortgage rates
Explain the short- and long-term cost difference
Help you complete whichever option saves you more
Our goal isn’t just to move your mortgage, it’s to ensure your next step actually benefits you financially.
Example: Product Transfer vs Remortgage in Action
Case 1: The quick switch saver
Sarah’s fixed rate ended next month. Her lender offered a 5.19% 2-year fix via product transfer. The best remortgage rate available was 4.95%, but would take 6 weeks to process.Since she’d have rolled onto a 7.49% SVR if delayed, Sarah chose the product transfer, saving money immediately while keeping flexibility for future remortgaging.
Case 2: The equity unlocker
James bought his home 5 years ago. His property value rose by £60,000, reducing his LTV from 90% to 70%.His lender’s retention deal was 5.29%, but a new lender offered 4.35% for the same term. By remortgaging, James saved £175 per month, over £4,000 across two years, even after fees.
Which Is Better for You: Product Transfer or Remortgage?
The “right” choice depends on your personal situation:
Short on time or need simplicity? Product transfer.
Seeking best rates and long-term savings? Remortgage.
Unsure what’s best? A broker can calculate the true cost difference for you.
Remember, even a 0.25% difference in rate can mean thousands in savings, so comparing is always worth it.
Frequently Asked Questions (FAQ)
1. Can I switch mortgage deals before my current one ends?
Yes, many lenders allow you to secure a new deal up to six months before your current one expires.
2. Do I need a solicitor for a product transfer?
No. Product transfers typically don’t require legal work or a solicitor, making them much faster to complete.
3. Will a remortgage affect my credit score?
Yes, a remortgage involves a new credit check. However, one application has a minimal effect if managed correctly.
4. Can I change my mortgage term when product transferring?
Some lenders allow this; others treat it as a new application. We’ll confirm what your lender allows before proceeding.
5. Are product transfer rates worse than new-customer rates?
Sometimes. Lenders often give better “headline rates” to attract new customers, so it’s worth comparing both options.
Written by Ben Stephenson, CeMAP‑qualified Mortgage Broker, and reviewed by Mortgage Experts.
Manor Mortgages is FCA authorised (496907), has 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 mortgage brokers, but can assist nationwide.