A product transfer means switching to a new mortgage deal with your current lender.
You are not changing lenders or borrowing additional funds, unless specifically arranged.
Instead, you are moving from your existing deal, such as a fixed rate, onto a new product offered by the same bank or building society.
Product transfers are often quicker and involve less paperwork. In many cases, there is no need for a full affordability reassessment, valuation, or legal work.
While this convenience can be appealing, it does not always mean it is the most competitive option available.
What is a Remortgage?
A remortgage involves switching your mortgage to a completely new lender.
This means going through a full mortgage application process again, including affordability checks, credit assessment, and a property valuation.
Remortgaging may allow you to access better interest rates, release equity, or restructure your mortgage term. It can also give you access to lenders whose criteria better match your current circumstances.
Although the process is slightly more detailed than a product transfer, it can provide greater flexibility.
Which Option is Cheaper?
The answer depends on your current lender’s rates and what is available elsewhere.
Sometimes your existing lender may offer a competitive product transfer rate that compares well with the wider market.
In other cases, switching lenders could reduce your monthly payments or secure a better long term deal.
It is important to look beyond the headline interest rate.
Arrangement fees, valuation costs and potential legal fees should all be considered when comparing options.
We calculate the overall cost of both routes before recommending a decision.
When Might a Product Transfer Make Sense?
A product transfer may be suitable if your circumstances have changed and affordability could be tighter under a full application.
For example, if your income has reduced or you have taken on additional financial commitments, staying with your current lender may avoid a full reassessment.
It can also be attractive if the rate offered is competitive and you prefer a straightforward process.
When Might Remortgaging Be Better?
Remortgaging can be more suitable if your property value has increased and your loan-to-value ratio has improved. This may open up lower rates with other lenders.
It is also worth considering if you want to borrow more, reduce your term, switch from interest-only to repayment, or restructure your mortgage in another way.
A remortgage gives access to a wider range of lenders rather than limiting you to one.
Why Reviewing Early Matters
Most lenders allow you to secure a new mortgage deal up to six months before your current rate ends.
Reviewing your options early ensures you avoid moving onto your lender’s standard variable rate, which is often higher.
As a mortgage broker in Beverley, we review product transfer offers alongside remortgage options across multiple lenders, ensuring the recommendation is based on cost, flexibility, and suitability rather than convenience alone.
Date Last Edited: March 2, 2026
