Product Transfer or Remortgage?

Different processes and product ranges

A straightforward product transfer may require less administration when borrowing is unchanged. The lender still sets its own selection window and checks. Additional borrowing, ownership changes or other alterations may need a different process.

A remortgage with another lender normally involves a new application, valuation and legal work. It can open another product range, but suitability and eligibility still depend on your circumstances and the property.

Compare the costs that actually differ

Put the two written illustrations side by side with the same borrowing, repayment term and comparison period. Include fees, early repayment charges, valuation and legal costs, and any interest charged on financed fees. Look at the remaining mortgage balance too.

Do not assume switching lenders saves a fixed percentage of interest or that a product transfer is always free of charges. Conditional cashback is only one input and should be confirmed for the relevant completed route.

Questions to resolve before deciding

• Are you only changing the rate, or also the amount, owners or property use?
• When can the new deal start, and when does an existing charge end?
• What happens if the product changes or an offer expires?
• Are there legal-package exclusions or fees payable before completion?
• How do the products fit your plans to move, overpay or change income?