When your fixed-rate mortgage is coming to an end, it’s natural to start wondering what happens next. Most lenders automatically move you onto their Standard Variable Rate (SVR), which is usually much more expensive. To avoid that jump in monthly payments, you’ll need to choose a new deal.
One of the simplest ways to do this is through a mortgage product transfer. If you’ve never heard the term before, don’t worry, most homeowners haven’t until they’re close to their deal ending. This guide explains everything in clear, simple terms so you can understand your options and choose what works best for you.
A mortgage product transfer is when you switch to a new mortgage deal with your current lender instead of moving to a different one. You’re not changing lender, solicitor, or mortgage balance; you’re simply updating the interest rate and sometimes the type of product.
Lenders typically offer product transfers to encourage you to stay with them as your deal ends. It’s their way of retaining you as a customer, and it’s often presented as the easiest option.
Most people look at product transfers when:
If convenience is your priority, a product transfer can feel like the natural choice.
One of the biggest benefits of a product transfer is how simple the process is.
A few months before your current deal ends, your lender will show you the new mortgage products available to you. This usually arrives by post, email, or through your online account.
These offers typically show the fixed rates, product fees and monthly payments based on your existing mortgage balance and term.
If you're keeping things “like-for-like”, meaning:
…then no new affordability checks or valuations are required. It’s essentially a rate switch, and in many cases can be completed online within minutes.
If you want to release equity or borrow extra money, it becomes a further advance. This is a separate application with full affordability checks and sometimes different interest rates. The process is more involved and not as quick as a standard product transfer.
Product transfers are popular for good reason, especially when homeowners want stability and ease. Here are the main benefits:
No underwriting checks.
No property valuation.
No solicitor involvement.
No delays.
If your financial situation has changed, such as becoming self-employed, reducing hours, or taking on additional debt, a product transfer can help you avoid a more complex remortgage application.
Most product transfers are fee-free, making them appealing if you want to avoid extra costs.
You can often complete the entire switch online in one sitting. For time-poor homeowners, this can be a significant advantage.
Some lenders offer preferential rates to existing customers to encourage them to stay. While not always the best on the market, it can still provide savings compared with being moved to the SVR.
If timing or convenience is a concern, a product transfer removes much of the stress associated with a full remortgage application.
Of course, convenience comes with trade-offs. It’s important to understand these before making a decision.
You can only choose from your current lender’s range. While they may show competitive options, they won’t show you whether better deals exist elsewhere.
A product transfer can look attractive, but the wider market may offer significantly lower interest rates or more flexible terms. Over several years, that difference can add up to thousands of pounds.
If you need a further advance, your existing lender might not offer the best terms, rates, or criteria. Another lender may give you a better solution, but you wouldn’t see those options through a simple product transfer.
The easiest option isn’t always the most cost-effective. Many homeowners accept a product transfer because it’s convenient, only to realise later they missed out on better rates elsewhere.
When your mortgage deal ends, you have two main choices:
A product transfer is about easing the process, whereas a remortgage is about maximising your options.
For many homeowners, the best approach is to compare both. That’s where whole-of-market advice makes a real difference; you can see every option, not just the ones your lender offers.
You may prefer a mortgage product transfer if:
You may benefit more from a remortgage if:
You’re not expected to know whether a product transfer or remortgage is best for your situation; that’s where expert advice makes all the difference.
We’ll compare what your current lender is offering against the wider mortgage market, explain everything in simple terms, and help you make a decision that protects your finances both now and in the long term. If you’d like friendly, honest guidance on your next mortgage move, contact us. We’re here to make the process clear, calm and cost-effective.
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