Question 1

What is a mortgage product transfer?

Accepted Answer

A mortgage product transfer — sometimes called a product switch — is when you move your existing mortgage to a new deal with your current lender, without changing the loan amount, repayment vehicle, or moving to a different lender. When your initial fixed or tracker rate deal period ends, your mortgage reverts to the lender's Standard Variable Rate (SVR), which is usually significantly more expensive. A product transfer allows you to avoid this by selecting a new fixed, tracker, or other deal from your existing lender's current product range. The process is typically quicker and simpler than a full remortgage because you remain with the same lender: there is no conveyancing, no new legal work, no change of title, and — in most cases — no new affordability assessment required. Many lenders allow product transfers to be completed online or over the phone within a matter of days.

Question 2

What is the difference between a product transfer and a remortgage?

Accepted Answer

The key difference is whether you change lender. A product transfer keeps you with your existing lender and simply moves you onto a new deal within that lender's product range. A remortgage involves moving your mortgage to a completely new lender, which requires full legal work (conveyancing), a new mortgage application, a new affordability assessment, and in most cases a new property valuation. A remortgage typically takes six to twelve weeks from application to completion; a product transfer can often be completed in days. The advantage of a remortgage is access to a much wider range of products across the entire market, which may include better rates or more flexible terms than your existing lender offers. The advantage of a product transfer is speed, simplicity, and the absence of legal and valuation costs. A product transfer is not reported as a new mortgage in the same way, which can also be relevant for some borrowers with complex credit histories.

Question 3

Do I need a new affordability assessment for a product transfer?

Accepted Answer

In most cases, no. The FCA's mortgage conduct of business rules include a provision that allows lenders to offer a product transfer to existing customers without conducting a new full affordability assessment, provided the loan amount is not being increased. This is sometimes described as a 'modified assessment' or a simplified process. From the borrower's perspective, this means that even if your income has changed since you originally took out the mortgage — for example, if you have become self-employed or your earnings have reduced — the lender is not required to re-underwrite you in the same way they would for a new application. This makes product transfers particularly valuable for borrowers whose income profile has changed in ways that might complicate a new mortgage application. However, lenders retain discretion, and some may still request income evidence in certain circumstances — for example, where you are significantly in arrears, or where the lender's own policies require a review. Always confirm the process with your existing lender or adviser before assuming no documentation is needed.

Question 4

Are product transfer rates as competitive as remortgage rates?

Accepted Answer

Product transfer rates have become increasingly competitive in recent years. Historically, lenders reserved their best rates for new customers (i.e. remortgage customers from other lenders), while existing customers on product transfers were offered a slightly less competitive range. The FCA's work on the mortgage market and consumer duty expectations have encouraged lenders to treat existing customers more fairly, and many large lenders now offer the same or very similar rates to existing customers on product transfers as they do to new customers. That said, you are limited to one lender's product range on a product transfer, whereas remortgaging gives you access to the full market. The best rate available from your current lender may not be the best rate available in the whole market. For most borrowers approaching the end of a deal period, it is worth comparing product transfer rates against the broader market — either independently or through a broker — before committing, even if the product transfer remains the right choice for speed or simplicity.

Question 5

When should I choose a product transfer over a remortgage?

Accepted Answer

A product transfer is often the better choice when speed and simplicity matter more than accessing the absolute best rate, or when remortgaging would be difficult for other reasons. Specific scenarios where a product transfer is worth considering include: your income has changed and you are unsure whether you would pass a full affordability assessment with a new lender; your credit profile has deteriorated since you took out the original mortgage; the property has fallen in value and a new valuation might change your loan-to-value bracket and therefore your rate eligibility; you are completing a sale or purchase of another property at the same time and want one fewer moving part; or the rate difference between your current lender's product transfer deal and the best available remortgage rate is small enough that the legal and valuation costs of remortgaging make it uneconomic. For complex income borrowers, the absence of a new affordability assessment on a product transfer can be a significant practical advantage.

Question 6

Can I get a product transfer if my income has changed since my original mortgage?

Accepted Answer

Yes, in most cases. As noted above, most lenders do not require a full new affordability assessment for a product transfer on an existing mortgage at the same loan amount. This means that if you were employed when you first took out the mortgage and have since become self-employed — or if your income has decreased, become more variable, or changed structure (for example, moving to dividends and salary rather than a salary alone) — you can still typically access a product transfer with your existing lender without having to evidence your current income. This is one of the most important practical benefits of a product transfer for borrowers with complex or changed income: it allows you to secure a new rate deal without the income scrutiny that a full remortgage application would involve. However, if you want to borrow additional funds — even a small increase — a new affordability assessment is usually required for the increased element, and your current income would be assessed at that point. If you need to borrow more, this is worth considering carefully with an adviser before proceeding.

Product Transfer Mortgage FAQ