What's the difference between a product transfer and a remortgage?

If you want to stay on top of your mortgage repayments and ensure you’re getting the right deal for your circumstances then remortgaging is one of the most important financial decisions you can make.

But is it best to change to a new mortgage product with your current lender via a product transfer or look to remortgage with another provider?

The reality is that there are advantages, disadvantages and differences to whichever route you choose to go down, which is why it’s essential to speak an experienced advisor who can guide you through the options available.

Product transfer versus remortgage

What is a remortgage?

A remortgage is when you replace your current mortgage with one from another lender. This is often done when your existing deal has come to an end, and you’re attempting to find a better deal than your current lender can offer.

What is a product transfer?

A product transfer involves switching to a new mortgage deal, often one with a different interest rate, or one fixed for another set period of time, with your current lender.

Should I stay with my existing lender or move to a new one?

When your mortgage comes to an end, it’s always a big decision to work out what your next move should be.

It may be that a product transfer onto a deal with a fixed interest rate for a longer period offers the kind of financial certainty that best suits your needs. Or it could be that remortgaging with a different rate, a different amount and a different term, offers the flexibility you require.

Staying with your current lender may feel like the saftest option when your mortgage comes to an end, but that’s no guarantee that you’ll be getting the right deal. That’s why we recommend shopping around to find a mortgage that’s fits you.

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Take the weight off your shoulders with specialist help

The most important element of the process is that you’re armed with the information you need to make the right decision for you. Which is where we come in.

As mortgage experts, we have access to a wide range of lenders and can look at the options available to you including any new deals from your current lender as well as make sure you don’t end up on their standard variable rate, which tends to be higher than the rates on most other options. So, make sure you don’t leave this big financial decision until the last minute.

We will talk you through all the pros and cons of a both a remortgage and a product transfer. Working hand-in-hand with you, we will assess all your options and help you make the right choice for you and your individual circumstances.

Call us on 0207 061 2345 or drop us an email at mortgageteam@thepennygroup.co.uk