When your current mortgage deal comes to an end, you have two main options: a product transfer, which means taking a new deal with your existing lender, or a remortgage, which means moving your mortgage to a different lender. A product transfer involves no valuation, no credit scoring and no legal work. A remortgage involves all three, but opens up the whole market. Neither is automatically the better choice, and the right route depends on your circumstances, your timing and how much certainty you want.
Key takeaway: If your circumstances have changed since you took out your mortgage, a product transfer may be the simpler and safer route, because it avoids a fresh assessment altogether. If your circumstances are stable, a remortgage lets you compare the whole market and can usually be secured earlier, which can protect you if rates move before your current deal ends.
[[stats: 3 months = Typical window before your deal ends to secure a product transfer | 6 months = How far ahead a remortgage can usually be secured | Days = Typical time to complete a product transfer, rather than weeks]]
What is a product transfer?
A product transfer, sometimes called a rate switch or an internal switch, is when you move onto a new deal with the lender you are already with. Your mortgage stays exactly where it is. The loan amount, the term and the property all stay the same, and only the interest rate product changes.
Because nothing about the loan itself is changing, there is no fresh assessment. That means no underwriting, no valuation of your property, no credit scoring and no legal process. In most cases it is a short application that can be completed in days rather than weeks.
The trade-off is choice. You are limited to whatever your existing lender is offering at that moment, which will not always be the most competitive deal available across the market.
What is a remortgage?
A remortgage means taking a new mortgage with a different lender, who pays off your existing mortgage and takes over the loan. Because it is a brand new mortgage with a lender who does not know you, it goes through the full process: a full underwrite, an assessment of your income and outgoings, credit scoring, a valuation of your property and a legal process to transfer the charge from one lender to the other.
That process takes longer and involves more paperwork. In return, you can compare deals across the whole market, borrow more if you need to, change the term, or add or remove someone from the mortgage. A fresh valuation will also take place, which may be more competitive than the online valuation provided by your existing lender. Our remortgage guide walks through the full process step by step.
How the two processes compare
The clearest way to see the difference is to lay the two journeys side by side. A product transfer has three stages. A remortgage has five.
[[flowcompare: Product transfer|Same lender|Review your options;Apply;Complete|No underwriting, valuation, credit scoring or legal work ;; Remortgage|New lender|Review your options;Apply;Full underwrite and valuation;Legal process;Complete|Two extra stages, and the whole market to choose from]]
Product transfer vs remortgage: the key differences
[[table: | Product transfer | Remortgage ;; Lender | Stays the same | Moves to a new lender ;; Choice of deals | Only what your current lender offers | The whole market ;; Underwriting | None in most cases | Full assessment of income and outgoings ;; Credit scoring | Not usually required | Yes, a full credit search ;; Valuation | Not required | Yes, and usually paid for by the lender ;; Legal process | None | Yes, though most lenders provide a free legal service ;; Typical timescale | Days | Several weeks ;; How early you can secure it | Usually around 3 months before your deal ends | Usually up to 6 months before your deal ends ;; Borrow more | Not as part of the transfer itself, but possible as a further advance, which runs as a second mortgage scheme alongside your existing one | Yes, subject to affordability and criteria, and kept as a single mortgage ;; Change the term | Limited, and may trigger a fresh assessment | Yes, subject to criteria ;; Add or remove a borrower | Possible at any time, but subject to an affordability assessment and credit score | Yes, subject to affordability and criteria ;; Benefit from a higher property value | Based on your bank's own online valuation | Yes, a fresh valuation takes place, which may be more competitive than an online valuation]]
Why the timing matters more than most people realise
This is the part that gets overlooked, and it is one of the strongest arguments for at least looking at a remortgage even if you expect to stay put.
With most lenders, a product transfer can only be secured around three months before your current deal expires. A remortgage can typically be secured six months early. That three month gap is not just an administrative detail. It changes how exposed you are if rates move.
[[ratetimeline: 6 months before deal ends|3 months before deal ends|Your fixed deal ends|Remortgage can be secured from here|Product transfer available|The shaded stretch is the exposure. If rates rise during those three months, someone waiting for their product transfer window to open has no choice but to take whatever is available when it does. Someone who applied for a remortgage at the six month mark already has their rate held.]]
The reason this matters is that a remortgage application generally works in your favour in both directions. Once we have applied for your product, we can usually amend it to a cheaper rate should rates come down before completion, depending on the lender and the stage of the application. If rates go up instead, you are already protected by the rate you secured.
A product transfer cannot be reserved until your deal has three months left to run. If rates increase during that window, you may be left choosing from a more expensive set of deals than the ones that were available a few months earlier.
Good to know: Securing a remortgage early does not commit you to going through with it. If your circumstances change, or a product transfer turns out to suit you better closer to the time, you can still change course. It is worth speaking to a mortgage broker at Quanstrom Financial about your specific lender's rules, as they vary.
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When might a product transfer be the better route?
A product transfer comes into its own when a fresh assessment would be unhelpful, or when speed and simplicity matter more than squeezing out the last fraction of a percent. Because there is no underwriting, no credit scoring and no valuation, your current circumstances are largely irrelevant to whether you can proceed.
[[accordion: My income has dropped or changed since I took out my mortgage|A remortgage involves a full affordability assessment against the new lender's criteria. If your income has reduced, become more variable, or you have taken on additional commitments, there is a risk that a new lender would not lend you the same amount. A product transfer avoids that assessment entirely, because your existing lender is not re-underwriting the loan. ;; I have had a credit blip since my mortgage started|Missed payments, a default or a county court judgment registered since you took out your mortgage would show up on a new lender's credit search. A product transfer does not usually involve credit scoring, so a recent issue is far less likely to stand in your way. It is still worth having the conversation, because the position may be less serious than you think. ;; I have just changed jobs or become self-employed|New lenders assess employment history and income evidence as part of the underwrite, and a recent change can narrow your options considerably, particularly if you have not yet built up accounts or payslips in the new role. A product transfer sidesteps this, and you can always look at a remortgage at the end of the next deal once your position is established. ;; My property may have fallen in value|A remortgage involves a fresh valuation, and if your property is worth less than you expect, your loan to value rises and the rates available to you may worsen. A product transfer does not require a valuation, so a softer local market does not affect your position in the same way. ;; I want this done quickly with minimal hassle|If your deal is close to expiring and you want certainty rather than a process, a product transfer is typically completed in days rather than weeks. There are no solicitors, no surveyor appointments and very little paperwork.]]
If any of these apply to you, it is worth reading our guides on mortgages with adverse credit and mortgages when you are self-employed alongside this one, since your options at the next renewal may be broader than you expect.
When might a remortgage be the better route?
A remortgage is the option that gives you access to everything. If your circumstances are stable and you want the widest possible choice, or you need the mortgage itself to change in some way, moving lender is usually the only way to achieve it.
[[accordion: I want to borrow more money|Additional borrowing can be arranged either as a further advance with your current lender or as part of a remortgage to a new one. A remortgage lets you combine the new borrowing and the new rate into a single mortgage, rather than running two separate schemes side by side. ;; My home has gone up in value|Lenders band their rates by loan to value. If your property has increased in value, or you have made overpayments, a fresh valuation could move you into a lower loan to value band and a better set of rates. A product transfer relies on your existing lender's own online valuation instead. ;; I want to change the term, or who is on the mortgage|Adding a partner, removing an ex-partner, or making a significant change to the length of the mortgage generally means a full application, since these are changes to the loan itself rather than just the rate. ;; I want to secure something as early as possible|Because a remortgage can usually be arranged around six months ahead, it is the only way to hold a rate that far in advance. If you are concerned about rates rising before your current deal ends, this is the route that gives you that protection. ;; My lender's own deals are not competitive|Some lenders price their existing customer deals keenly and others do not, and it varies from month to month. The only way to know whether your lender's offer is genuinely good is to compare it against the rest of the market, which is exactly what a whole of market broker does.]]
What if you want to raise funds?
Raising money against your home is possible on either route. You can do it through a remortgage to a new lender, or as a further advance alongside a product transfer with your existing lender. The important thing to understand is that both routes involve a full underwrite, and often a new valuation, so the simplicity of a straight product transfer no longer applies once additional borrowing is involved.
The practical difference is how the borrowing is structured. A remortgage keeps everything as a single mortgage on one rate. A further advance sits alongside your existing mortgage as a second scheme, which means two balances, potentially two different rates and two different end dates to keep track of.
Lenders also apply very different rules on how much you can raise, and on what you can raise it for. Halifax, for example, allows further advances for existing customers up to 85% of the property's value, whereas other lenders such as Atom Bank allow borrowing up to 95%. Some purposes are treated more generously than others, and the limits can change depending on what the money is for. Speak to a mortgage broker at Quanstrom Financial to review your options.
Do you have to go direct to your bank for a product transfer?
No, and this is one of the most common misconceptions we come across. Many homeowners assume that because a product transfer stays with their existing lender, they have to arrange it themselves through their bank's app or call centre.
Quanstrom Financial can arrange product transfers with the vast majority of lenders, so you very rarely need to go direct to your bank. In practice that means you do not have to choose between the two routes blind. We can look at your existing lender's product transfer deals and the rest of the market side by side, and then handle whichever route you decide on.
Going direct only shows you one lender's answer. As a whole of market broker, Quanstrom Financial can tell you whether that answer is a good one. Our guide on using a mortgage broker versus going direct to your bank covers this difference in more detail.
What does the legal process on a remortgage actually cost?
The legal side of a remortgage is usually far cheaper than people expect, because it is not the same as buying a home. On most remortgage products the lender provides a solicitor and covers the standard legal fees for you.
What you should still expect to pay are the disbursements: the third party checks the solicitor has to carry out. These typically include identity checks, bankruptcy searches and Land Registry checks, and generally come to roughly £50 to £200 in total.
If your property is leasehold, expect these costs to be a little higher. The solicitor needs to review your lease and notify the freeholder that the charge on the property has changed hands, and both of those add to the bill.
A product transfer has no legal process at all, so none of these costs apply. That is a genuine saving, but it is worth weighing against the rate difference rather than treating it as the deciding factor on its own.
What could your payments look like on a new deal?
We understand many people are coming off their fixed rates from 2021, which were typically lower than what rates are today. Use our handy calculator below to get an idea of what your payments will change to upon renewing your deal. Enter your outstanding balance, a rate you have been quoted and your remaining term to see the monthly figure.
[[calc:repayment]]
So which is right for you?
Neither option is inherently better than the other. A product transfer is simpler, faster and completely avoids a fresh assessment, but it limits you to one lender's range and cannot be secured as far ahead. A remortgage opens up the whole market, can be locked in earlier and lets the mortgage itself change, but it means a full underwrite, a valuation, credit scoring and a legal process.
What actually decides it is your own circumstances. If your position has changed in a way that would make a fresh application harder, the simplicity of a product transfer may be worth more to you than a slightly better rate. If your position is stable, and particularly if your property has gone up in value or you want to protect yourself against rate rises, the wider choice and earlier timing of a remortgage may serve you better. It is also worth thinking about the type of product you move onto, which our guide to fixed versus tracker mortgages covers in detail.
The most useful thing you can do is start looking around six months before your deal ends, so that both options are still genuinely open to you. A mortgage broker at Quanstrom Financial can compare your existing lender's product transfer deals against the rest of the market and explain the difference in plain terms, so you can decide with the full picture in front of you.
Frequently asked questions
Can I remortgage with my current lender?
Staying with your current lender and moving onto a new rate is what the industry calls a product transfer rather than a remortgage, though many people use the word remortgage for both. The distinction matters because the process is very different: a product transfer needs no valuation, credit scoring or legal work, while a genuine remortgage to a new lender involves all three.
Does a product transfer affect your credit score?
A product transfer does not usually involve a full credit search, because your lender is not making a fresh lending decision, so it typically has no impact on your credit file. A remortgage to a new lender does involve a credit search, which will be recorded, although a single application in the normal course of switching deals is not generally something to be concerned about.
How soon can you remortgage before your fixed rate ends?
You can usually start arranging a remortgage around six months before your current deal ends, which reflects how long most mortgage offers stay valid. A product transfer with your existing lender typically cannot be secured until around three months before expiry, though a small number of lenders allow longer.
Do you need a solicitor for a product transfer?
No. Because the lender and the property are not changing, there is no charge to transfer and therefore no legal work to do. This is one of the main practical advantages of a product transfer over a remortgage.
Can you arrange a product transfer through a mortgage broker?
Yes. Quanstrom Financial can arrange product transfers with the vast majority of lenders, so you very rarely need to go direct to your bank. That means both routes can be compared properly before you commit to either one, rather than only seeing what your own lender happens to be offering.
What happens if rates fall after you have applied for a remortgage?
In many cases the application can be amended onto a cheaper rate before completion, though this depends on the individual lender's policy and how far along the application has progressed. This is one of the reasons applying early tends to work in a borrower's favour, since it offers some protection if rates rise without fully closing the door if they fall.
Can you borrow more money with a product transfer?
Not as part of the transfer itself, but you can apply for a further advance alongside it with your existing lender. A further advance involves a full underwrite and often a new valuation, and it sits as a separate mortgage scheme alongside your existing one rather than merging into a single loan.
Who is the best lender to remortgage with?
There is no general best lender to remortgage with, and it is always based on your own circumstances and the lenders available to you. A mortgage broker at Quanstrom Financial will advise you on the best way forward.
Are there costs associated with the legal process of remortgaging?
The lender can provide you with a solicitor and cover the standard legal fees for you, but you should still expect costs for identity checks, bankruptcy checks and Land Registry checks, which could come to roughly £50 to £200. If the property is leasehold, the fees could be slightly higher, because the solicitor needs to check your lease and inform the freeholder of the change of security.
What happens if you do nothing when your deal ends?
If you take no action, your mortgage will normally move onto your lender's standard variable rate, which is typically higher than the deals available to you and can change at any time. Reviewing your options a few months before your deal ends is the simplest way to avoid that.
Do I need life insurance to get a mortgage?
No, life insurance is not a legal requirement and lenders do not generally insist on it, although buildings insurance is required. Quanstrom Financial strongly recommends life cover to anyone whose family depends on their income, because a mortgage becomes a debt of your estate if the worst happens. Our guide on whether you need life insurance for a mortgage explains what is genuinely required and what is worth considering.
Written by Toby Quanstrom CeMAP, Director at Quanstrom Financial, a whole of market mortgage broker based in Eastbourne, East Sussex.
This article is for general information only and does not constitute advice. Your circumstances are unique, so please speak to an adviser before making a decision.
Your home may be repossessed if you do not keep up repayments on your mortgage.
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