We are The Mortgage Pod, product transfer mortgage brokers
When your mortgage is up for renewal, it can seem like an unwelcome task. Who has time to shop around from 100s of lenders, play email tennis and, ugh, the paperwork… We get it. That’s why The Mortgage Pod is here: to take the stress out of decision-making and make the application process simple.
For many, sticking with their current mortgage lender can be an attractive option. There’s less admin involved and no underwriting, which equals a lot less paperwork for you. Plus, you can have the whole thing wrapped up during your lunch break.
However, just because a product transfer is quick and easy does not mean it’s always the best option. As independent brokers, we always advise shopping around with new lenders before settling on a new deal with the same lender.
If your remortgage options are causing you stress, contact The Mortgage Pod. Our friendly team of brokers cares only about getting you the best deal for your circumstances. Call or message us today.
What is a mortgage product transfer?
Also known as a product switch, a product transfer mortgage is essentially remortgaging with your existing lender. It’s the process of switching to a new mortgage deal, often on more favourable terms than your lender’s standard variable rate (SVR), that you would otherwise move to at the end of your current deal.
How do product transfers work?
If you decide to stay with your existing mortgage lender, you can simply choose a product from their range and apply. Your new deal will start the day after your current deal ends.
As to how far in advance you can apply for mortgage product transfers, it varies. Here’s a useful guide to how much notice is required by the big mortgage lenders (correct as of April 2023).
| Accord Mortgages | 90 days prior to end of term |
| Barclays | 180 days prior to end of term |
| BM Solutions | 90 days prior to end of term |
| Coventry | 4 months prior to end of term |
| Halifax | 6 months prior to end of term |
| HSBC | 180 days prior to end of term |
| Leeds Building Society | 180 days prior to end of term |
| Nationwide | 4 months prior to end of term |
| NatWest | 6 months prior to end of term |
| Santander | 4 months prior to end of term |
| Skipton Building Society | 180 days prior to end of term |
| The Mortgage Works | 13 weeks prior to end of term |
| TSB | 4 Months prior to end of term |
| Virgin Money | 120 days prior to end of term |
How long do product transfer mortgages take?
The beauty of product transfers is that they can be completed really quickly, sometimes in mere minutes. This is because your lender won’t usually require a full credit check or property valuation, so the administration is far quicker.
Our mortgage product transfer service
Before you decide to stay with the same lender, talk to The Mortgage Pod. We can help you explore the benefits of switching lenders and present you with the best deals for your circumstances.
Even if you decide to stay with your existing lender, you can still benefit from a professional mortgage broker’s advice. We can help you review your options and ensure that the quick option is also the right option.
For reassurance on making the right decision on your remortgage, contact us today to arrange a chat with a friendly mortgage broker.
Is a product transfer right for you?
If a quick, hassle-free process with minimal paperwork is a priority, a mortgage product transfer might be the ideal option. It might also be a wise move if your financial situation has changed, which might make qualifying for a new mortgage with another lender difficult.
Let’s look at the pros and cons in a bit more detail:
What are the advantages of a product transfer?
Fast with minimal paperwork
The product transfer process is quick and can sometimes be completed in just a few minutes. Some lenders will only ask you to sign a declaration before completing the transfer.
No valuation required
For product transfers, your lender will not usually ask for a new property valuation. Instead, they’ll work from a computerised valuation. If you disagree with this valuation figure, you may be able to request a new one, as it can impact your loan-to-value (LTV) and the new deals you qualify for.
Minimal underwriting
If you stay with your current mortgage lender, your application won’t be assessed by an underwriter. It’s also unlikely that they will carry out credit checks or check your income.
Change of circumstances
If you move to a new lender, then you will have to start a brand new application with a full affordability check. If your financial circumstances have changed since you took out your mortgage, for example, if you have taken a pay cut or if your credit report is not in the best shape, that could make it harder to meet a new lender’s criteria. Your current lender is unlikely to delve as deep if they’re satisfied with your mortgage repayment history.
What are the disadvantages of a product transfer?
Not necessarily the cheapest deal
Mortgage product transfers are easy, but lenders know that, so you’re unlikely to get their best deal. Meanwhile, another lender might be keen to snap you up with competitive interest rates and other incentives.
Limited choice of terms
Mortgage providers tend to offer a limited range of products for a transfer mortgage. For example, you might only be able to choose from a 2-year fixed rate or a 5-year fixed rate, whereas they might offer new customers a wider range, such as a 2-year tracker or a 3-year fixed rate. Therefore, it might be best to be a new customer elsewhere.
Lack of advice
A product transfer is considered an execution-only transaction, so you won’t be offered any advice. This leaves you vulnerable to taking an unsuitable deal. That’s why you should always talk to a mortgage broker.
Change of circumstances
When you took out your mortgage two, three, or even five years ago, your current lender may have been the best option. But life moves fast, and they might not be the best choice for you today.
Happy with your current mortgage lender? Get in touch with us today
It could be in your best interest to accept a new deal from your existing mortgage lender, but that’s not always the case. There are thousands of mortgage deals out there, and chances are there is one that is more competitive than your current deal, which could help you save money and reduce your monthly mortgage payments.
For friendly and independent product transfer mortgage advice, contact the experts at The Mortgage Pod.
Frequently asked questions about product transfer mortgage
Can I change my product transfer after I’ve got a mortgage offer?
Just because you have a new mortgage offer, it does not mean you are committed to completing on it. As your mortgage broker, we will continue to monitor rates and deals and let you know if there’s a better deal to be had right up until completion.
Can I change the term of my mortgage when completing a product transfer?
Many lenders will consider increasing the term of your mortgage without the need for additional underwriting or paperwork. If you want to shorten your mortgage term, it may be subject to full underwriting and affordability checks, in which case, overpayments might be a better option.
Should I arrange a valuation before completing a product transfer?
You don’t need to arrange a valuation before applying for a product transfer, as your mortgage lender will use a desktop valuation such as an index-linked valuation.
Will I need a solicitor to complete a product transfer?
As the mortgage charge secured on the property will not change, no legal work is required to complete a product transfer mortgage application.
Do I need a mortgage broker for a product transfer?
You can, of course, approach your current lender to complete a product transfer directly. However, unlike a professional mortgage broker, they will not offer you any advice, just a list of options to pick from, so it’s a good idea to work with a broker, even if you’re staying with the same lender.
What is the difference between a product transfer and a rate switch?
These are the same things in a different guise. You might also hear of a product transfer referred to as a “product switch” or “internal transfer.”
