Product Transfer

What is a product transfer mortgage? 

A product transfer is where we select a new rate from the existing lender; this is usually a two—or five-year fixed contract, depending on the situation, or maybe even a tracker rate. We do this to avoid the client paying the standard variable rate. The client has very little input in the product transfer process as they do not have to prove income to the lender, and it's very much the broker going through a simplified application. 

Lenders then generally email clients to clarify their willingness to proceed. With most lenders, we can do this up to six months before the existing deal expires. From this point, I monitor the rates and, if possible, reduce them further before the new product transfer takes effect.

 

Are there disadvantages of transferring a mortgage product rather than remortgaging?

There are no disadvantages. A product transfer is easier for a client as it involves them doing very little. A remortgage is fairly similar to a purchase process, so it involves clients' form filling, signing and providing information to a conveyancer/ solicitor.

 

How can I help?

I can look at individual clients' situations and assess what would be the best course of action for the client to take regarding doing a product transfer or a remortgage; in some situations, we may do both and see which one is the best option for the client later down the line if we have allowed 6 to 7 months before the existing deal ends.