When your mortgage deal ends, you face a choice: product transfer vs remortgage. A product transfer means taking a new deal from your current lender without moving the loan. A remortgage means switching to a different lender, usually for a better rate or terms. Both avoid the standard variable rate, but they work differently and suit different situations.
This guide compares the two so you can see which is likely to be right for you. For the full picture, start with our pillar guide, remortgaging explained.
What is a product transfer?
A product transfer is when you stay with your existing lender and simply switch to one of their new deals when your current one ends. There is no change of lender, no new legal work in most cases, and often no fresh valuation or affordability assessment.
Because it is quick and light on paperwork, many lenders make product transfers easy, sometimes with just a few clicks. That convenience is part of the appeal, but convenience is not the same as value.
What is a remortgage?
A remortgage is when you move your mortgage to a new lender. It involves a fresh application, an affordability check, a valuation and some legal work, though many remortgage deals include free legals and a free valuation.
It takes a little longer, but it opens up the whole market, which is where the best rates and terms often sit.
Product transfer: pros and cons
Pros
- Fast and simple — minimal paperwork and quick to arrange.
- Usually no new affordability check — helpful if your income has dropped, you are newly self-employed, or your circumstances have changed.
- No new valuation — useful if your property value has fallen or you are in negative equity.
- No legal work in most cases.
Cons
- You only see one lender's deals, so you may not get the best rate available.
- No chance to borrow from a more competitive lender if you want to release equity.
- The convenience can cost you if a better deal exists elsewhere.
Remortgage: pros and cons
Pros
- Access to the whole market, so potentially better rates and terms.
- Ability to release equity or restructure the loan with a lender that suits your plans.
- A chance to review everything, including your term and mortgage type.
Cons
- More paperwork and time, typically four to eight weeks.
- A full affordability check and valuation, which can be a hurdle if your circumstances have changed.
- Possible fees, though many deals cover legals and valuation.
When a product transfer makes sense
A product transfer can be the better route when:
- Your circumstances have changed — reduced income, a recent job move or new self-employment could make a fresh affordability check harder to pass.
- Your property value has fallen or you are in negative equity, so remortgaging to a new lender is difficult.
- You want speed and simplicity and your current lender's deal is genuinely competitive.
- Your outstanding balance is small, so remortgage fees would outweigh the saving.
When a remortgage makes sense
A remortgage tends to win when:
- Another lender offers a meaningfully better rate than your current one.
- You want to release equity for improvements, consolidation or other plans.
- You want to change your term or mortgage type in a way your current lender cannot match.
- Your circumstances are strong and you can pass affordability comfortably.
Why whole-of-market advice matters
Here is the catch with a product transfer: your existing lender only shows you their own deals. It is easy to accept because it feels effortless, but you have no way of knowing whether it is genuinely competitive without comparing the rest of the market.
This is exactly where a whole-of-market adviser earns their keep. Wisely compares your lender's product transfer offer against deals from more than 120 lenders, so you can see whether staying put really is the best move or whether switching would save you more. Sometimes the transfer wins on convenience and cost; sometimes a remortgage saves considerably more. Either way, you make the decision with the full picture, not half of it.
Because we are a paid, independent adviser rather than a fee-free broker, our recommendation is based on what suits you, not on a single lender's products. Your named adviser handles the comparison and the process from start to finish.
Any figures mentioned are correct at the time of writing and can change. Your home may be repossessed if you do not keep up repayments on your mortgage.
Let Wisely compare both for you
Not sure whether to stay or switch? Book a free, no-obligation call with a Wisely adviser on 023 8268 1111. We will compare your product transfer offer against the whole market so you can choose wisely.
This guide is general information, not personal financial advice.
Frequently asked questions
What is the difference between a product transfer and a remortgage?
A product transfer means taking a new deal from your existing lender without moving the loan. A remortgage means switching to a different lender. A transfer is quicker and simpler, while a remortgage opens up the whole market and often better rates.
Is a product transfer cheaper than a remortgage?
Not necessarily. A product transfer is faster and involves fewer fees, but you only see one lender's deals. A remortgage may offer a better rate elsewhere. The only way to know which is cheaper overall is to compare both, which is where whole-of-market advice helps.
When is a product transfer the better option?
A product transfer often suits you if your circumstances have changed, your property value has fallen, you are in negative equity, your balance is small, or you want speed and your lender's deal is competitive. In these cases a fresh application may be harder or not worthwhile.
Do I need a new affordability check for a product transfer?
Usually not. Most product transfers do not require a fresh affordability assessment or valuation, which is why they can suit borrowers whose income or property value has changed. A remortgage to a new lender does involve these checks.