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Should you consider a Product Transfer with your current provider as an alternative to re-mortgaging?

We can help you understand the difference between Product Transfers and re-mortgaging, and decide which option is most suitable given your circumstances.

What is a Product Transfer?

A Product Transfer (PT) is when you move from your existing mortgage deal to a new one with your current lender. Although not a new concept, a Product Transfer is a lesser-known option which could be a much quicker and easier alternative to re-mortgaging and saving money on your monthly mortgage repayments, depending on your circumstance.

If you are currently on your lender’s Standard Variable Rate (SVR) which has recently increased you may want to consider moving on to a fixed-rate mortgage plan instead with this lender and this is an example of a Product Transfer.

What is the difference between mortgage porting and a Product Transfer?

Porting a mortgage is transfering your current mortgage deal to a new property, for example if  you are planning on moving and want to stay with your current lender or if you’re on a fixed deal it may be possible to transfer your current mortgage deal to a new property.

What is the Product Transfer procedure?

The Product Transfer process is usually very straightforward, unlike requesting an advance or going down the re-mortgage route:

  • It is unlikely that a formal valuation will need to be carried out on your property
  • They are usually quickly arranged with your lender either over the phone or via your Mortgage Broker
  • Some high street lenders do not require further affordability checks
  • Many lenders do not require a re-evaluation of proof of income

You will be provided with a Product Transfer document to sign and the process can potentially be completed in as little as a week.

Product Transfer rates and fees

Product Transfer fees vary from lender to lender, but standard Product Transfers are a lot less hassle to process than a new mortgage application or a re-mortgage, therefore making it a cheaper option in many cases.

What is the difference between Product Transfers and re-mortgaging?

How do you know whether a re-mortgage or Product Transfer is best for you, and what’s the difference between the two?

As previously explained, a Product Transfer is typically a simple process involving switching from one mortgage product to another with your existing lender.

If you decide that you want to borrow more money this would be classed as a “further advance” or a re-mortgage if you decided to move to a new lender at a different rate.

When it comes to further advances (and any other form of ‘non-standard’ Product Transfer, for example extending the terms of your mortgage), or re-mortgaging the process involved is more extensive. It will usually require a full mortgage valuation to be carried out, there are the legal requirements to consider, as well as the usual credit checks and affordability assessments.

Pros of a Product Transfer vs re-mortgaging

Alternatives to Product Transfers have more steps and checks to deal with so the process is likely to take much longer. There are more people involved and more costs in making the arrangement. The main pros of a Product Transfer over other options are:

  • In most cases you will not be subject to a full valuation
  • There are not usually any legal steps or fees to pay
  • Fewer fees overall due to fewer stages and people involved in the process
  • Less paperwork to fill out

We are an experienced mortgage broker offering a free mortgage advice service that can help you with all this and more.⠀

We can let you know if you are better off staying with your current lender and moving to a new deal with them or switching to a different provider. We can help you decide what is affordable and doesn’t impact on your current lifestyle. We make the process as simple as possible and you don’t need to leave home.⠀

Please contact Michaela on 020 3954 2103 or email mchard@fundugive2.com or visit our website www.fundugive2.com

We will also donate 25% of our fees from the mortgage lenders to a charity of your choice 

Please check out our re-mortgage guide fundugive2 re-mortgage guide