How to Remortgage Without Changing Your Lender (Product Transfer Guide)

When you hear the term "remortgage," it's easy to assume it means moving your mortgage to a new lender. While that is one route, there's a lesser-known yet equally effective option: remortgaging without switching lenders, also known as a *product transfer*. This option can save you time, reduce paperwork, and potentially cut your costs—all without changing banks.

In this comprehensive guide, we'll walk you through everything you need to know about product transfers: what they are, how they work, when to consider one, and how to complete the process smoothly.

What Is a Remortgage?

A product transfer is when you move to a new mortgage deal with your existing lender. Typically, this happens when your current mortgage deal (like a fixed or tracker rate) comes to an end. Rather than switching to a new bank or building society, you simply choose a new product from your existing provider's offerings.

This option can be particularly appealing for those who want a quick and easy remortgage process without all the red tape that comes with changing lenders.

Why Consider a Product Transfer?

There are several benefits to choosing a product transfer:

1. Simplicity: The process is straightforward. You don’t have to go through extensive affordability checks, and paperwork is minimal.

2. Speed: Product transfers can be completed in as little as a week or two, compared to the longer timeline of a traditional remortgage.

3. No Legal Fees: Since you’re staying with the same lender, you don’t need a solicitor or conveyancer.

4. Avoid Valuation Delays: Often, lenders use a simple desktop valuation or waive the valuation altogether.

5. Credit Score Flexibility: If your credit has worsened since you took out your original mortgage, staying with your current lender may allow you to bypass a new credit check.

6. Cost Savings: While not always the cheapest deal, you could avoid early repayment charges and administrative fees associated with switching lenders.

When Should You Choose a Product Transfer?

A product transfer is ideal in several scenarios:

Your current deal is ending : As your initial rate expires, your lender will likely move you to their Standard Variable Rate (SVR), which is often much higher.

You want a hassle-free option : If you don’t want to deal with solicitors, valuations, and paperwork, a product transfer can offer a smooth transition.

Your financial situation has changed : Perhaps you’ve become self-employed, taken a pay cut, or have other financial complexities. Staying with your lender may be easier than requalifying elsewhere.

You want to avoid fee : Early repayment charges, legal costs, and valuation fees can add up when moving lenders. A product transfer often minimizes or eliminates these expenses.

You're happy with your lender*: If your experience has been positive and your lender offers competitive rates, there may be no reason to switch.

The Product Transfer Process: Step-by-Step

Let’s walk through how a typical product transfer works:

Step 1: Review Your Current Mortgage Deal

Check the terms of your current mortgage and identify when your initial fixed or tracker rate ends. Most lenders allow you to start the process up to 3-6 months in advance.

Step 2: Contact Your Lender or Mortgage Broker

You can speak directly with your lender or go through a mortgage broker. Brokers can access exclusive deals and offer advice on whether staying put is the best option.

Step 3: Get a Product Transfer Illustration

Your lender will provide a Key Facts Illustration (KFI) showing the details of your new product, including monthly payments, interest rate, fees, and term.

Step 4: Compare Deals

Even if you’re leaning towards a product transfer, it’s wise to compare your lender’s offer with those from other banks. This ensures you’re not missing out on better rates elsewhere.

Step 5: Accept the New Product

Once you’ve decided, you can accept the new deal online, by phone, or in writing. There’s no need to reapply or undergo a full affordability check in most cases.

Step 6: Confirmation and New Terms

Your lender will send you confirmation of the switch and your new terms. The new rate will take effect on an agreed date, usually after your current deal expires.

Potential Drawbacks of Product Transfers

While product transfers offer convenience, they’re not always the best financial option. Here are some points to watch out for:

Limited Product Range: Some lenders may only offer a handful of remortgage options.

Not Always the Cheapest: Other lenders might offer better rates or incentives, such as cashback or free legals.

Lack of Incentives: Lenders rarely offer perks for product transfers, unlike remortgaging to a new provider.

Automatic Renewal Risk: If you don’t act before your deal ends, you may be automatically moved to the lender’s SVR, which can be costly.

Should You Use a Mortgage Broker?

Even if you’re not switching lenders, a broker can still offer valuable guidance:

* Help you assess whether a product transfer is truly your best option.

* Compare your lender’s offering with the entire market.

* Handle the admin and communication.

* Sometimes access exclusive or intermediary-only deals even with your current lender.

Most brokers are free to use, as they receive commission from the lender.

Final Tips for a Successful Product Transfer

1. Start Early : Don’t wait until your current deal ends. Begin researching and contacting your lender 3-6 months in advance.

2. Keep an Eye on SVR : Be aware of what rate you’ll move to if you don’t switch products.

3. Watch for Fees : Some product transfers include arrangement or booking fees. Weigh these against the savings.

4. Ask About Porting : If you plan to move home soon, ask whether your new mortgage deal is portable.

5. Understand the Terms : Make sure you know the early repayment charges, overpayment limits, and any other conditions.

Conclusion

Remortgaging doesn’t have to mean starting from scratch. A product transfer allows you to switch to a better mortgage deal with minimal hassle and potentially lower costs—all while staying with your current lender. It’s not always the best financial option, but in many cases, it’s the most convenient.

If your current deal is ending soon, now’s the perfect time to consider whether a product transfer could be the right fit. Speak to your lender or mortgage broker, explore your options, and make an informed decision to keep your mortgage working in your favor.