Product Transfer Mortgage

Straightforward mortgage advice from expert brokers. Finding the perfect mortgage just for you without the jargon. 

1 Step 1

Straightforward mortgage advice from expert brokers. Finding the perfect mortgage just for you without the jargon. 

What's On This Page?

Get In Touch
1 Step 1
Product Transfer Mortgage, Vantage Mortgages

Product Transfer Mortgage

Adam Messer explains how product transfers work and when they can be a good option.

What is a product transfer and how does it work?

We get this a lot, because people know the term ‘remortgage’ but not ‘product transfer’. It’s a bit of a technical term or jargon, just describing the option to stay with the same lender. You keep your mortgage with them and just choose a new rate.

We call mortgages products. Your two-year fixed rate is a product and so this is just transferring from one product to the next.

Let’s assume you’re on a fixed rate. When it ends, you just choose a new fixed rate with the same lender. That’s your product transfer.

What’s the difference between remortgaging and taking a product transfer?

A remortgage is specifically when you move from one lender to the next. You’re actually making a change to your provider. You’re paying off one mortgage with another. With a product transfer, the lender doesn’t change.

Is it better to stay with your existing mortgage lender?

It’s different for everyone and every case is different. With certain lenders, if you’ve got a mortgage we can pretty much bet that it’s best to stay with them.

Whenever we see someone that doesn’t need to do anything different with their mortgages – which we’ll talk about in a second – we will always compare their options with the same lender.

Some really do look after existing customers. But in this modern world, loyalty doesn’t count for much, and most lenders don’t offer existing customers as good a deal to stay as you would get from a new lender.

So, equally, it may be best to leave your existing lender and find another one. There are certain lenders that help people with unusual criteria – and they know they’ve got you for a reason. You’re unlikely to be able to move, so their existing customer rates aren’t going to be as good. If we can get you away from that, it can be helpful.

When should I remortgage rather than transfer my product?

It’s often best to remortgage if you want to make any changes – if you want to borrow more or reduce the mortgage size. Maybe you’ve got some savings you want to use to pay off the mortgage a bit.

Generally speaking, if you overpay on your mortgage and you’ve got more than the 10% annual allowance, you might not do a product transfer. You can go on to the variable rate instead, make your overpayment and then pick up your product transfer.

But the chances are that the month on a higher rate outweighs any saving you make compared with swapping lenders. We could move lenders and make your lump sum reduction through the solicitor. Your new mortgage will then be lower than your existing one.

It’s the same if you want to borrow more. With the current lender it can be a pain because you have to deal with them directly – that can be a nightmare via call centres. To borrow more, you have to do a ‘further advance’ at the same time as your product transfer. You’ve got two things going on.

Rates aren’t always as good for a further advance and you have to do the whole application yourself. With one or two lenders we can do it for you, but not on the whole.

If we go to a new lender, we can just borrow more from them. You’ve got the difference in your bank account without any extra stress, because we take care of it all. So the best choice will depend on your situation.

Speak To an Expert
Our highly knowledgable advisers are ready to help and answer any questions you may have around your first time buyers mortgage.

Can I product transfer early?

There was a time recently when rates started going up. We’re early now in March 2024 and when rates started rising you could only do a product transfer with the same lender about three months early – but you could re-mortgage to a new lender six months early as the offer would last longer.

So we were finding that everyone was remortgaging. No one was product transferring because we could get in six months early. With rates were going up, the earlier you got in with your remortgage, the better.

Lenders then cottoned on to the fact that all their customers were disappearing. Most of them changed their product transfer window to six months in advance. So now, you can usually do it.

When is a product transfer a good idea?

People often need to do product transfer because their situation has changed. Perhaps their income has changed – they may have gone self-employed or taken a pay cut. They may now have credit issues that would make it hard to move lenders.

You can always do a product transfer and stay with the same lender. They don’t ask any questions, so if you’re just changing rates with the same lender they won’t ask you about your income. That makes it an easier thing to do.

You can’t make any changes necessarily, but we don’t always want to make changes when we remortgage.

How long does a product transfer take?

It can be almost instant. Most lenders want it done a couple of weeks before the end of the month, to take effect the following month. We try and get people in early – ideally we try and do it six months in advance if we can. Then it can sit there and wait. You can do that with most product transfers now.

It can be done very quickly because there’s no questions asked. If you do it sooner, though, and rates go up, we’ve banked you a more cost effective deal. Some people worry about doing it too early in case rates come down. But if they do come down you can change the deal – most lenders let you do that nowadays.

How much does a product transfer cost?

A product transfer doesn’t tend to cost anything. There may be a reservation fee on the new rates that you choose – perhaps £999 – but most people will tend to add that to their mortgage and don’t count that as a cost. There are no other costs to consider.

There’s no solicitor involved because you’re staying with the same lender. There’s no valuation to be done. Your current lender will make an assumption about the value of your property based on what it was last time.

Let’s say two years ago you bought your property and valued it at a certain amount. They will use that to make an assumption on its value now. This can sometimes be a pain – if you’ve done loads of work to the property, the lender won’t know about that.

Say you put in a five or ten percent deposit when you bought two years ago but you’ve spent £50,000 making it better. It’s going to be worth more and so your Loan to Value and your equity will be better. So their assumption would be wrong.

If we can get them to value it higher that would potentially give you a better rate. We can do that with some lenders. We can disagree with the valuation and they’ll send a valuer round to check. But sometimes lenders will charge you for that valuation. If they’re going to do that anyway, you might be better off moving lenders – then you probably get a free evaluation.

If you change lenders, as long as you’re not changing the ownership of the property, there’s usually no solicitor fee – the lender pays it. There’s no valuation fee – the lender pays it because they want your business.

Do you need a credit check for a product transfer?

No, this is the beauty of product transfers. If you have fallen on hard times or had some blips since you took out the mortgage, you can stay with your lender.

As an example, if you took out a mortgage with Nationwide but since then you’ve defaulted on three of your credit cards, you will really struggle to take that mortgage away from Nationwide to another mainstream high street lender.

Providing you don’t need to make any changes to that mortgage it’s probably best just to keep that mortgage with Nationwide. They’re not going to check as long as the mortgage is up to date.

But if you are behind on the mortgage, they may well not offer you a product transfer. They may put you on the variable rate. It’s backwards – because you’re even more likely to not be able to afford it, but that’s a story for another day. Essentially, if you’re just doing a product transfer, there’s no credit check.

Can you cancel a product transfer?

Yes. So if we do one now, six months early, and then rates change, we can cancel and do a new one. Or we can cancel and remortgage. We can cancel up until a couple of weeks before the end date. We just need to give the system time to organise the new product.

How can a mortgage broker like Vantage help with a product transfer?

You should always use a mortgage broker, even if it’s just to check you’re doing the right thing. We can help you with a product transfer – we can do it for you on the system with most lenders.

Plus, we will compare that deal with remortgaging elsewhere, and we will keep an eye on it for you. If rates go down we will redo it. We’ll cancel the old one and set up a new one.

If you do a product transfer directly with your bank they won’t tell you if their rates have gone down, or that you could get a better deal now by changing product. You would have to keep an eye out for yourself. That’s a great reason to use a mortgage broker.


You may have to pay an early repayment charge to your existing lender if you remortgage.