What Is a Product Transfer?
A product transfer is when you stay with your existing mortgage lender but move onto a new rate at the end of your current deal. You are not borrowing more money, not moving house, and not changing lender. You are simply selecting a new product from your current lender’s range.
Product transfers are faster and simpler than remortgaging. There is no new credit check, no new affordability assessment, no solicitor involved, and no legal fees to pay. Most lenders can process a product transfer within a few days.
The trade-off is that you are limited to your current lender’s products. You are not comparing the full market.
What Is a Remortgage?
A remortgage means switching your mortgage to a new lender entirely. You apply for a new mortgage, the new lender pays off your existing one, and you start fresh with a different provider.
Remortgaging gives you access to the entire market. You can compare hundreds of products and find rates your current lender may not offer. You can also change your mortgage term, release equity, or restructure the deal to suit your circumstances.
The process typically takes four to eight weeks. It involves a full application, credit check, affordability assessment, valuation, and legal work. There are usually fees involved, though these can often be offset by the rate saving.
Product Transfer vs Remortgage: The Key Differences
| Product Transfer | Remortgage | |
|---|---|---|
| Lender | Same lender | New lender |
| Credit check | No | Yes |
| Affordability check | No | Yes |
| Legal fees | No | Yes (often covered) |
| Speed | Days | Four to eight weeks |
| Rate access | Your lender only | Whole of market |
| Equity release | No | Yes |
Is a Product Transfer Cheaper Than a Remortgage?
Not necessarily. The assumption that staying put is always cheaper is wrong.
Product transfers often involve no arrangement fees and no legal costs. On the surface that looks like a saving. But if your current lender’s rates are higher than the market rate, you will pay more every month for two or five years. That difference compounds quickly.
For example: if the best market rate is 4.25% and your lender’s product transfer rate is 4.75%, on a £200,000 mortgage that is roughly £70 to £80 more per month. Over two years that is around £1,800. A remortgage with a £999 arrangement fee still leaves you better off overall.
A broker can run both options side by side before you commit to either.
When a Product Transfer Makes More Sense
There are clear situations where a product transfer is the better call.
Your circumstances have changed. If your income has dropped, your credit score has taken a hit, or you have taken on new debt, a full affordability check could result in a decline or worse terms from a new lender. A product transfer sidesteps that assessment entirely.
You are self-employed with variable income. Lenders assess self-employed income using the last two years of accounts or tax calculations. If your most recent year shows lower income than the year before, your affordability at a new lender will be based on that lower figure. Your existing lender has no obligation to reassess you, which can work in your favour. For more on this, see our self-employed remortgage guide.
Speed is a priority. If your fixed rate ends imminently and you need a new product in place quickly, a product transfer can be confirmed in days rather than weeks.
When Remortgaging Makes More Sense
Remortgaging is usually the right move when the rate saving justifies the process.
You want the best available rate. Your current lender has no obligation to offer you their most competitive products. A whole-of-market broker can access deals not available directly from lenders, including exclusive rates. See our remortgage page for an overview of what is available.
You want to release equity. Product transfers do not allow you to borrow more money. If you want to access equity for home improvements, investment, or debt consolidation, you need to remortgage.
Your loan-to-value has improved. If your property has gone up in value or you have paid down a significant portion of capital, you may now qualify for a lower LTV band with a different lender. That can unlock meaningfully better rates.
What Happens If You Do Nothing When Your Fixed Rate Ends?
If you take no action, your mortgage automatically reverts to your lender’s Standard Variable Rate.
The average SVR in March 2026 is 7.15%, compared to average fixed rates of 4.25% for a two-year fix and 4.40% for a five-year fix. On a £200,000 mortgage, sitting on the average SVR instead of taking a competitive fixed rate costs approximately £490 more per month. There is no cap on how long you can sit on an SVR and no restriction on how high lenders can set it.
You can lock in a new rate up to six months before your current deal ends with most lenders, without triggering early repayment charges. Act before your deal expires, not after.
Can I Remortgage with My Current Lender?
A product transfer and remortgaging with your current lender are technically different things. Remortgaging involves a formal new application with a credit check; a product transfer does not.
Whether your lender calls it a product transfer or a retention deal, the key question is whether their rates are competitive. Answering that requires market-wide data, which is exactly what a whole-of-market broker provides.
Do I Need a Solicitor for a Product Transfer?
No. A product transfer does not involve changing the legal title of the property, so no solicitor or conveyancer is required. This is one of the main practical advantages when you are looking for speed and simplicity.
A remortgage does involve legal work, because the new lender needs to register their charge against the property. Most lenders offer a free legals option or a cashback to cover the cost, so it rarely comes out of your pocket directly.
Can I Release Equity with a Product Transfer?
No. A product transfer is a like-for-like rate switch on your existing balance. If you want to borrow additional money against your property, you need to remortgage.
Some lenders offer a further advance alongside a product transfer, which is a separate loan secured on the property. This usually requires an affordability assessment and is not the same as a full remortgage, but it can work for borrowers who want to access equity without switching lenders entirely.
Buy-to-Let and Limited Company Mortgages
The same principles apply to buy-to-let mortgages, but the market comparison matters even more.
Buy-to-let lenders vary significantly in how they assess rental income, particularly at different LTV levels and with different portfolio sizes. A lender that was right two years ago may not offer the best deal now.
For limited company landlords, the case for a whole-of-market search is strong. Not all lenders lend to SPV limited companies, and rates across those that do vary considerably. A product transfer locks you into one lender’s SPV range. That range may not be competitive. For specialist advice on this, see our self-employed buy-to-let page.
How Early Repayment Charges Affect Your Decision
If your fixed rate has not yet expired, switching before the end of your deal will usually trigger an early repayment charge. These are typically calculated as a percentage of the outstanding balance, often between one and five percent.
In most cases it is not worth paying an ERC to switch early, unless rates have dropped significantly and the long-term saving outweighs the charge. A broker can run that calculation for you. Most people should start reviewing their options three to six months before the deal end date, when the ERC either expires or is low enough to absorb.
Not Sure Which Is Right for You?
Reviewing both options takes very little time with the right support. A whole-of-market broker can compare your current lender’s product transfer rates against the full market in a single conversation. You are not committed to remortgage simply by getting the quotes.
If your fixed rate ends within the next six months, now is the right time to review. Book a free mortgage review with Mondo Mortgages and we will check both options for you.
Frequently Asked Questions
Is a product transfer the same as a remortgage?
No. A product transfer means switching to a new rate with your current lender. A remortgage means switching to a new lender entirely. A product transfer is faster and simpler; a remortgage gives you access to the full market and potentially lower rates.
How long does a product transfer take?
Most product transfers are confirmed within one to five business days. Many lenders allow you to lock in a rate up to six months before your current deal expires, with the new rate taking effect when the old one ends.
How long does a remortgage take?
A standard remortgage typically takes four to eight weeks from application to completion. Starting the process three to six months before your deal ends allows enough time to switch without hitting your lender’s Standard Variable Rate.
Should I remortgage or stay with my lender?
It depends on your circumstances. If your credit is strong and better rates are available on the open market, remortgaging will usually save you money over the term. If your circumstances have changed, a product transfer may be the more suitable option. The right answer requires comparing both, which a broker can do quickly and for free.
What happens if I do nothing when my fixed rate ends?
Your mortgage defaults to your lender’s Standard Variable Rate. The UK average SVR in March 2026 is 7.15%, which is substantially higher than available fixed rates. Your monthly payments will increase significantly and the SVR can be changed by your lender at any time.
Can I get a product transfer if my circumstances have changed?
In most cases, yes. Product transfers do not require a new affordability assessment, which is one of their main advantages if your financial situation is different from when you took out the original mortgage. However, lender policies vary and some may still review your circumstances in certain situations.
Your home may be repossessed if you don’t keep up repayments on your mortgage.
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