Remortgage or product transfer: what to do when your deal ends
When your fixed rate is coming to an end, you have two main choices: take a new deal from your current lender, or move to a different lender. I’ll compare both for you, side by side, so you can see which one really works out best.
What happens when your fixed rate ends?
If you do nothing, your lender will normally move you onto its standard variable rate (SVR) or another follow-on rate. These are usually higher than the deals available to new and existing customers, so your monthly payment can go up quite a lot.
The good news is that you don’t have to wait for your deal to end. Many lenders let you secure a new rate several months before your current one finishes, often up to around six months ahead. That gives you time to lock something in and, in many cases, still switch if a better rate comes along before you complete.
Your lender may write to you near the end of your deal. It’s worth acting on that letter, but it’s also worth checking it against the rest of the market before you sign anything.
Product transfer or remortgage: what’s the difference?
A new deal with your current lender
- You stay with the same lender and switch to one of its new rates
- There’s usually no new valuation or legal work
- If you’re not borrowing more, there are often fewer checks
- It can be a good option if your circumstances have changed, for example a drop in income or a change of job
A new mortgage with a different lender
- You move your mortgage to a new lender
- You can choose from the wider market, which may mean a better rate
- The new lender checks your income, credit and the value of your home
- Some lenders include a basic valuation and legal work in certain deals
Which is better? It depends. Sometimes your current lender’s offer is the best you’ll get. Sometimes another lender is noticeably cheaper once you add up the rate, the fees and any incentives. I look at both, so the decision is based on the full picture rather than whichever letter landed on your doormat.
My fees for this are simple: there’s no fee for a product transfer, and remortgages are £299, payable only once you receive your full mortgage offer – see my fees.
Early repayment charges: check before you switch
An early repayment charge (ERC) is a fee your lender may charge if you leave your deal, or pay off a large amount, before the deal period ends. They can be significant, so it’s important to know where you stand.
- Where to find them: your mortgage offer, your annual statement, or your lender’s online account will show any ERC and the date it ends
- Timing matters: arranging your new deal to start on or just after the date your ERC ends usually avoids it
- Sometimes it’s worth paying: occasionally the savings from switching early, or the need to borrow more, outweigh the charge. I’ll do the sums so you can decide
- Overpayments: many deals let you overpay a certain amount each year without a charge. Check your terms before making a lump-sum payment
If you’re also thinking of moving, you may be able to take your current deal with you, known as porting. That’s covered on my moving home page.
Raising money when you remortgage
A remortgage, or further borrowing from your current lender, can be a way to release some of the equity in your home. People I help often use it to:
Improve the home
An extension, a new kitchen or a loft conversion, instead of moving.
Make a change
Buy out an ex-partner, help a family member, or pay off a Help to Buy equity loan.
Simplify debts
Bring other borrowing into one monthly payment. This needs careful thought (see below).
Whether a lender will let you borrow more depends on your income, your outgoings, your credit history and how much your home is worth. You can get a rough idea with my mortgage calculators, and it’s worth checking your credit report before a new lender does.
Other things worth reviewing at the same time
- Changing your mortgage term, to pay it off sooner or lower your monthly payment
- Moving some or all of an interest-only mortgage onto repayment
- Adding or removing someone from the mortgage
- Choosing between a fixed rate and a tracker (see my fixed vs variable guide)
- Building in room to overpay
- Checking your life cover still matches what you owe
Borrowing more? Check your cover too
If your mortgage changes, your life cover or critical illness cover may no longer match it. I can look at what you already have alongside your new deal, with no hard sell and never a fee to you for protection advice.
How a remortgage review with me works
Tell me your end date
Send me your deal end date and roughly what you owe. A WhatsApp is fine.
I compare both routes
Your lender’s product transfer options against 80+ lenders, including fees and any ERC.
You choose
I explain the options in plain English and recommend the one I think suits you best.
I handle it
I arrange the new deal and keep an eye on it until it’s in place.
I’m based in Fareham and help homeowners across Whiteley, Locks Heath, Portchester, Gosport, Portsmouth, Southampton and the rest of Hampshire. Most remortgage reviews are done by phone, video or WhatsApp.
Frequently asked questions
When should I start looking at remortgaging?
Ideally about six months before your current deal ends. Many lenders let you secure a rate that far ahead, and if rates fall before you complete you can often switch to a better one.
Is a product transfer better than a remortgage?
Not always. A product transfer is usually quicker, with no new valuation or legal work, but another lender may offer a lower overall cost. I compare both so you can see which works out better for you.
Do you charge a fee for a product transfer?
No. There’s no fee for a product transfer. Remortgages are £299, and that fee is only payable once you receive your full mortgage offer.
Can I remortgage before my fixed rate ends?
Yes, but you may have to pay an early repayment charge. Your mortgage offer or annual statement shows when it ends. Usually it’s best to time your new deal for when the charge ends, unless the numbers say otherwise.
Can I borrow more when I remortgage?
Often, yes, for things like home improvements or buying out an ex-partner. It depends on your income, outgoings, credit history and your home’s value. If you’re thinking of consolidating debts, think carefully, as you may pay more interest overall and the debt becomes secured on your home.
Can I pay off my Help to Buy equity loan when I remortgage?
Often, yes. Many people remortgage to repay some or all of a Help to Buy equity loan. You’ll need a valuation for the equity loan and approval from the scheme administrator, and I can help you plan the timing.
Don’t take my word for it
Is your deal ending soon?
Send me your end date and I’ll compare your lender’s offer with the rest of the market. There’s no obligation, and you’ll get an honest answer either way.
Or email contact@easy-mortgages.co.uk, WhatsApp 07368 330822, or use my contact form. Monday to Friday, 9am to 7pm.
Easy Mortgages Limited (FCA 972959) is an appointed representative of Mortgage Intelligence Ltd, which is authorised and regulated by the Financial Conduct Authority (FCA number 305330). 10 Merryfield, Fareham, Hampshire, PO14 4SF.