How long have you got left on your current mortgage deal?
If you’ve got a fixed rate mortgage deal that’s coming to an end within the next 6 months, or if your financial circumstances have changed since you last took out your mortgage, then it might be worth considering a product transfer.
What is a product transfer?
Often still the lesser-known alternative to remortgaging, product transfers (or product switches) are becoming more and more popular as a way to offer you flexibility and financial benefits with your mortgage.
A product transfer simply means switching your existing mortgage loan to a new deal with the same lender.
The benefits of choosing a product transfer
A product transfer is a simpler process and, as you remain with the same lender, there’s less paperwork. This usually makes the process quicker so it’s ideal if you’re getting close to the end of your term and haven’t yet considered changing your deal.
Better rates than your SVR
If you’re coming to the end of your fixed term then without a product transfer or remortgage, you’ll switch to your current lenders Standard Variable Rate (SVR), which could be up to five times higher than the rate you could achieve. A product transfer will usually offer you better rates with a different product so keeping your monthly payments more affordable.
Your circumstances have changed
Perhaps your employment has changed and you’re now part-time or self-employed since the last mortgage deal was agreed. Product transfers generally don’t require you to prove your income so can be a sensible choice for those who have had a change to their income.
Remortgaging can be expensive
There are usually no (or very few) fees associated with a product switch. There won’t be a valuation fee to factor in, and no solicitors or legal fees involved so it can be a cheaper alternative to a remortgage.
Whilst some lenders will keep their best rates for new customers only, there may be some that will reward your custom for not moving elsewhere. So, it’s always worth checking.
Mortgagemove will look to compare the rate your current lender offers, with those lenders on our panel, to make sure you’re getting the right deal.
Your mortgage is probably your biggest financial commitment so it’s important to continually check you’re making the best financial choices, even if you don’t plan on moving house anytime soon.
Our mortgage advisors can help you to work out whether a product transfer is the right choice for you and what deals may be available. Call our freephone mortgage advice line on 0333 005 0333. And in a 15-minute discovery call we can evaluate your financial circumstances and offer you helpful financial advice.
Your home may be repossessed if you do not keep up your mortgage repayments.