What is a Product Transfer?
A product transfer is when you remortgage with the same lender.
Remortgaging doesn’t always mean swapping mortgage providers. You remortgage whenever you change the deal you’re on, switching to a new rate, term, loan amount or other special features.
Why remortgage with the same lender?
Mainly because remortgaging with the same lender – doing a product transfer – is more straightforward and can often be a more cost effective option.
When you switch mortgage lenders, you need to reapply for a mortgage. That means passing eligibility and affordability checks, having your property valued, and getting solicitors involved. With a Product Transfer, there’s none of that.
We will simply discuss the options and ascertain which is the most suitable rate and move your existing mortgage across to the new deal. This will happen at the end of your introductory period and just before you fall onto the Standard Variable Rate. It’s worth noting, to take advantage of a more competitive rate, some lenders will allow you to switch your current rate up to 4 months early and they will even waive any Early Redemption Charges.
THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST YOUR HOME. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR ANY OTHER DEBT SECURED ON IT.
Debt consolidation is not always the most suitable option and consolidating debts must be carefully considered. It will usually mean more interest over a longer repayment term and there may also be early repayment penalties on your current mortgage, so you should think carefully before securing other debts against your home. You can find out more by contacting the Money Advice Service http://www.moneyadviceservice.org.uk/en/articles/where-to-go-to-get-free-debt-advice.