21/02/2025
A mortgage product transfer means switching from your current mortgage deal to a new one with the same lender. This can be handy if your current deal is ending or if you want to borrow more money and use your home as security. For example, you might want to renovate your house or you might switch from a Standard Variable Rate mortgage to a fixed rate. 💡
Remortgaging is a bigger financial commitment than a product transfer, so it's important to think it through. The benefits include lower interest rates if your home's value has gone up, you could find a more flexible mortgage, and potentially being able to borrow more money. You might also extend or reduce the term of your loan, or change how you pay it back. You won't be stuck with your current lender's mortgage products, either. 😯
A mortgage product transfer and remortgaging have many similarities, but there are also significant distinctions to take into account before selecting which is best for you. 👇🏼
A mortgage product transfer might be a better option if you need to move quickly because there is less documentation involved, and because you aren't switching lenders, the transaction is typically completed more quickly. ⏰
Many of the costs associated with a new mortgage (such as property valuation, legal fees, and conveyancer fees) may also be associated with remortgaging. Remortgaging might not be the best option for you because of these additional costs. 💷
Remortgaging and changing lenders may be a more suitable alternative for you if your present provider is unable to offer the mortgage you need. ✅
(Think carefully before securing debt against your home. Your property maybe repossessed if you do not keep up repayments on your mortgage.)
