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Product Transfer vs Remortgage: What’s the Difference and Which Is Right for You?
If your mortgage deal is coming to an end, one of the first questions you’re likely to ask is whether you should stay with your current lender or move to a new one. That is really the difference between a product transfer and a remortgage. They can both help you avoid rolling onto your lender’s standard variable rate, but they are not the same thing, and the right option will depend on what matters most to you. 
What is a product transfer mortgage?
A product transfer is essentially where you already have a mortgage with a lender and, rather than remortgaging to another lender, you simply select a new product with your current lender.
So if your current deal ends on 30 April, for example, you might choose a new deal with the same lender and that new product would begin from 1 May. In simple terms, you are staying with the same lender and switching onto a new rate or product.
What is the difference between a product transfer and a remortgage?
The main difference is the lender.
With a product transfer, you stay with the lender you already have. With a remortgage, you move your mortgage to a different lender.
So if you are with Barclays and choose another Barclays product, that is a product transfer. If you leave Barclays and take a deal with HSBC or Santander instead, that is a remortgage.
That sounds simple, but it matters because the process, checks, timing and costs can all look different depending on which route you take. Current UK guidance still frames product transfers as the quicker, easier route in many cases, while remortgaging opens up the wider market and may offer better value overall.
Should I do a product transfer or a remortgage?
It depends on your circumstances and what matters most to you.
Sometimes people are just looking for the best rate, and sometimes that means going to another lender. Other people prefer the easier option, and that is often the product transfer. So it is less about there being one right answer for everyone, and more about what you need.
A product transfer is often attractive because it is usually simpler and faster. A remortgage can be worth it if another lender is offering a better rate or a more suitable product. The key point is that you should compare both rather than assume staying put is automatically best.
When should I start the conversation?
For a remortgage, the conversation often starts earlier.
A good rule of thumb is to start looking around six months before your current deal ends, because that is when many remortgage options start to come into play. A product transfer window can be shorter and depends on the lender. Some lenders currently work on around three or four months, and NatWest currently states a four-month product transfer window.
So if your deal ends in December, for example, July is a sensible point to start the conversation, especially if you want time to compare whether staying with your current lender or moving elsewhere is the better option.
Is a product transfer simpler than a remortgage?
One of the biggest benefits of a product transfer is that it is normally the more straightforward option. There is generally no legal work in the way there would be with a full remortgage to a new lender, and the whole journey is often faster and less hassle.
That simplicity is one of the biggest reasons many homeowners choose it. MoneySavingExpert currently describes product transfers as often quicker, easier and sometimes cheaper than switching lender.
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Do I need credit checks, legal work or extra paperwork?
A product transfer is usually lighter-touch than a full remortgage.
In many cases, there is no separate legal work involved, and the process is more straightforward than applying to a new lender. That is one of the reasons it can be quicker.
That said, the exact process can vary depending on the lender and whether you are making any other changes at the same time, such as borrowing more.
Can I get a product transfer with Help to Buy?
In many cases, yes.
If you used Help to Buy, staying with your current lender can sometimes make things simpler than moving to a new one. But the process can still depend on your circumstances, including whether you are borrowing more, changing lender, or making any changes linked to the equity loan.
If Help to Buy is involved, it is worth checking the details properly before making a decision, because the process can be more complex than a standard product transfer.
Can I borrow more money on a product transfer?Potentially, yes.
If you want to borrow more for something like home improvements, that may be possible alongside a product transfer. This is often done through what is known as a further advance, where you take additional borrowing against the property at the same time as reviewing your current deal.
The exact way that works can vary by lender, so it is something that needs to be checked properly. But yes, it can be possible.
What if my circumstances have changed since I first got the mortgage?
This is one of the reasons some people prefer a product transfer.
If your income has reduced or your circumstances have changed, staying with your current lender can sometimes be the simpler option. A product transfer is often more straightforward than moving to a new lender, especially if you have kept up with your mortgage payments and your account has been well maintained.
If your circumstances have changed, that does not automatically mean a product transfer will be the right option, but it is definitely worth exploring.
Will I pay early repayment charges or other fees on a product transfer?
If you wait until your current deal ends and your new one starts after that, you would not usually be paying an early repayment charge just for switching onto the new deal.
That said, some products may still come with fees and some may not. Often, a lower rate can come with a product fee, so it is important to look at the overall cost rather than just the headline rate.
That is where advice can make a real difference.
A product transfer and a remortgage can both be good options, but they do different things.
If you want the simpler route and your current lender is offering something competitive, a product transfer may be a good fit. If you want to shop around and see whether another lender can offer something better, a remortgage may be worth considering.
The important thing is not to assume one is automatically better than the other. The best option is the one that works for your circumstances, your plans, and your mortgage.
This is general information, not personal advice. Recommendations depend on your circumstances and lender criteria.
Your home may be repossessed if you do not keep up repayments on your mortgage.