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A product transfer is when you switch to a new mortgage deal with the lender you already have, rather than moving your mortgage somewhere else. The loan stays with the same lender, for broadly the same balance, and you move onto a new rate. It’s one of the simplest ways to avoid drifting onto your lender’s standard variable rate (SVR) when a fixed or tracker deal ends.
How does a product transfer work?
Instead of applying for a new mortgage, you ask your existing lender what deals it can currently offer you, choose one and sign up to it. Because the lender is not changing, several steps that apply to a full remortgage are often skipped or simplified.
| Feature | What to expect |
|---|---|
| Who you deal with | Your existing lender only |
| New borrowing | None, for a straight like-for-like switch |
| Affordability assessment | Not required under FCA rules where you are not borrowing more (MCOB 11.6.3R) |
| Valuation | Often not needed |
| Credit search | Depends on the lender; often none or a soft search for a like-for-like switch |
| Legal work | Often none, since the mortgage continues rather than being redeemed and replaced |
| Timing | Many lenders let you choose a deal a few months ahead, often 3 to 6 months before your current one ends |
The rule that allows this is in the FCA’s mortgage conduct rules: where an existing customer switches to a new deal, is not borrowing more (other than to cover a product fee) and is not changing the mortgage in a way likely to be material to affordability, the lender does not have to carry out a full affordability assessment. It does not oblige the lender to offer you a deal, and a lender can still decide what it offers someone in arrears.
Product transfer or remortgage: which applies to you?
Both change the deal on your mortgage, but they work differently. A product transfer is quicker and simpler because you stay with the same lender, while a full remortgage to a new lender usually means a hard credit search, a valuation, an affordability assessment and legal work, but potentially access to a wider range of deals. Our guide on remortgage or product transfer sets out the trade-offs in full.
A further advance is different again: it is extra borrowing added to your existing mortgage with your current lender, rather than a like-for-like switch, and it usually needs a fuller assessment. See our guide on what a further advance is if that’s what you’re considering.
Does arranging a product transfer involve a credit check?
It depends on the lender. Because a like-for-like switch doesn’t need a full affordability assessment, many lenders run no credit search at all, or a soft search that other lenders cannot see. Some may still run a hard search, particularly if you’re changing other things about the mortgage at the same time. Our guide on remortgaging with the same lender explains the different types of search in detail.
What do you need to arrange a product transfer?
Lenders typically want to confirm:
- your mortgage account number and current balance
- your deal end date and any early repayment charge that would apply if you left early
- that your payments are up to date, or details of any arrangement in place if they’re not
- basic confirmation of your circumstances, even though a full affordability check usually is not required
Having these to hand, and checking a few months before your deal ends, gives you time to compare what’s on offer rather than being rushed onto whatever is available at the last minute.
When might a product transfer not be offered?
A product transfer is common, but it is not guaranteed in every case:
- You’re in arrears on the mortgage. A lender can decide what it offers someone who is behind, and some want the account brought up to date first.
- Your mortgage is held by a firm that no longer offers new deals. Some borrowers end up unable to move deal with their existing lender at all; this situation is sometimes called being a mortgage prisoner.
- You want to borrow more, or change the mortgage in a way that affects affordability, such as extending the term or adding a borrower, which can trigger a fuller assessment.
If you’re behind on payments, contact your lender early. Lenders must treat struggling borrowers fairly and consider options such as a payment arrangement, and free, impartial advice is available from MoneyHelper, StepChange and National Debtline.
What changes if you have adverse credit?
The mechanics of a product transfer are the same whatever your credit file looks like. What changes is how much it can help: because a like-for-like switch usually skips a full affordability assessment, a CCJ, default or missed payment that has appeared since you took out your mortgage may matter less to your existing lender than it would to a new one. That is often why a product transfer is worth comparing carefully if your credit history has changed.
It is not automatic. A lender can still decide what to offer someone with recent mortgage arrears, and it is not obliged to offer a deal at all. Our page on product transfers with bad credit goes into this in more depth, including when your lender might not offer one and how it compares with moving lender in that situation.
Frequently asked questions
Is a product transfer the same as a remortgage?
Not quite. A remortgage usually means moving your mortgage to a new lender, or replacing it with a new one, while a product transfer keeps your mortgage with your existing lender and simply moves you onto a new deal. Our guide on remortgage or product transfer compares the two in more depth.
Does a product transfer involve a valuation?
Often not, if it's a straightforward like-for-like switch, because your lender already knows the balance and does not need to check affordability in the same way. Some lenders may still update their records with an estimated value. Ask your lender what it needs before you agree.
Can I switch lenders after taking a product transfer?
Yes. A product transfer is simply the deal you're on with your current lender. When it ends, you can look at another product transfer, a remortgage to a new lender, or a further advance, depending on what you need. Comparing your options again each time your deal ends is sensible.
Do I need a solicitor for a product transfer?
Usually not, because your mortgage continues with the same lender rather than being redeemed and replaced, so there is little or nothing for a solicitor to do. Legal work is more relevant to a full remortgage, where the mortgage moves to a new lender. See our guide on whether you need a solicitor to remortgage.
Can a product transfer be arranged online?
Many lenders let existing customers choose a new deal through their online banking or mortgage portal, without an adviser. Others require you to speak to someone or use a broker. It depends on the lender, so check what your own offers.