The information contained in this article was correct at the time of writing
January 4, 2024
The UK Mortgage Product Transfer Service: Seamlessly Switch to a Better Deal
If your current mortgage deal is coming to an end, you may be looking for ways to find a more suitable product. Rather than going through the full mortgage application process again, you have the option to transfer to another deal with your existing lender. A product transfer could allow you to improve your interest rate, adjust your payment terms, or switch mortgage types while avoiding excessive fees and paperwork.
In the UK’s highly competitive mortgage market, lenders offer attractive product transfer deals to retain existing borrowers. The Financial Conduct Authority estimates that nearly 50% of borrowers remortgage with their existing provider. As market leaders like Lloyds, HSBC, Barclays, NatWest and Santander actively compete for your business, you are in a strong position to negotiate improved terms.
This guide will clarify exactly what a product transfer is, survey the top deals currently available, and outline the potential savings. Read on to learn how remortgaging with your current lender could unlock a better mortgage arrangement.
What is a Mortgage Product Transfer?
Benefits for Borrowers
Top Deals Currently Available
Estimated Potential Savings
Next Steps to Switch Deals
What is a Mortgage Product Transfer?
A product transfer, also known as a rate switch or internal remortgage, allows you to move to a new deal with your existing lender without the hassle of a full remortgage. You avoid excessive legal fees, valuation fees, and application charges.
You can usually switch to any of the new customer mortgage deals available from your lender. The options on the table match what you would see if applying for a brand new mortgage. The key difference is the simplified administrative process.
Some of the common reasons to consider a mortgage product transfer include:
- Your current deal term is ending – Transfer to avoid reverting to the lender’s standard variable rate
- You want to adjust your interest rate – Improve your existing rate by switching deals
- You need to change other terms – Adjust loan length, payment type, early repayment charges etc.
- You want to borrow more – Transfer to a new deal that includes additional funds
- Improve flexibility – Switch to an offset mortgage or change overpayment allowances
A product transfer is not tied to the end of your current deal. You typically have the flexibility to switch 3-6 months before expiry without paying early repayment charges. And some lenders allow transfers even sooner.
Check with your existing lender to confirm you qualify for a product transfer, when transfer deals become available, applicable charges, and any other requirements.
If you want to move your mortgage to an entirely new lender, you would need to go through the full remortgage process including credit checks, affordability assessments and legal fees. In many cases, you can get an equally good or better deal through a simpler product transfer.
Call now to evaluate product transfer options and determine if switching lenders could secure you a better mortgage.
Benefits for Borrowers
Opting for a mortgage product transfer provides several advantages over starting from scratch with a new lender:
Speed and Convenience
- Typically complete transfers within 1-2 months rather than 3-4 months
- Avoid credit checks and income verification
- No need for a property valuation in most cases
Lower Fees
- Skip arrangement fees – only pay product switch fee (£50-£1500)
- Avoid legal fees (£500+), valuation fees (£200-£1000+), and application charges
Flexible Timing
- Transfer before your current deal expires
- – Switch whenever you spot a better rate – not limited to end of deal term
Loan Continuity
- Existing balance and repayment term carries over
- No disruption to direct debits, account numbers etc.
Loan Continuity
- Simplified application and paperwork
- Deal direct with existing lender where you have an established relationship
Whether your priority is saving time, reducing remortgage costs, or securing a competitive rate, transferring to a new product with your current mortgage provider offers clear benefits.
Reach out now to discuss your existing deal, review the latest product transfer options, and take advantage of this faster and more affordable route to an improved interest rate or loan terms.
Top Deals Currently Available
Major lenders like Lloyds, HSBC, Santander, Barclays and NatWest routinely offer some of their lowest rates exclusively to existing borrowers looking to transfer deals.
Check if you qualify for exclusive transfer customer rates from your existing lender that beat the average market rates. Act now to review current products and determine if there is opportunity to reduce your interest rate or improve other mortgage terms through a product switch.
Estimated Potential Savings
The amount you could potentially save by transferring to a better product depends on your current mortgage details and the new rate you can qualify for.
For example, if you have a £200,000 mortgage currently on your lender’s standard variable rate of 5.5%, switching to a 2-year fixed rate of 1.69% would reduce your monthly payments by over £500 per month. That results in over £12,000 saved in interest over those 2 years.
The savings are also substantial even just switching from an older higher fixed rate. If you previously locked in a 3% 5-year fixed deal and can now qualify for HSBC’s 2-year fixed at 1.69%, you save nearly £150 per month. Over 2 years, your lower interest payments put an extra £3,500 back in your pocket.
Use an online mortgage calculator to estimate your potential savings based on your outstanding loan amount and the new interest rate. And consult with a mortgage adviser to review your specific circumstances and exactly which product transfer deals you may qualify for.
The numbers clearly show that taking advantage of lower product transfer rates can translate into thousands of pounds in mortgage savings. Determine your estimated savings now and evaluate if a product switch merits the small upfront administrative charge.
Next Steps to Switch Deals
If a mortgage product transfer looks to be right for your situation, here is an overview of the process:
1. Confirm existing deal expiry – Transfer deals open up 3-6 months before your current product ends. Diarize the date.
2. Review new customer rates – Check current products on your lender’s website starting 90 days prior to get a sense of likely options.
3. Contact lender 3 months out – Call to check eligibility for transfer deals not advertised. Pre-approve for a product switch.
4. Compare offerings – With teaser rates in hand, compare options and determine best new rate/term combo.
5. Submit switch application – Formally apply via phone, branch appointment, or lender’s website.
6. Completed switch – New product goes live seamlessly on your expected completion date.
While this outlines the standard timeline, always verify specific requirements with your mortgage lender early in the process. Some may permit earlier transfers or have extra criteria.
Do not wait! Lock in a better interest rate and improved mortgage terms now through a convenient product transfer. Get started today by calling our team to discuss available deals or set up a meeting with an adviser to review your situation.
