If your fixed rate is ending in the next few months, you’ve probably had a letter from your lender with a new deal on it. It’s tempting to sign it and move on. Sometimes that’s the right call. But sometimes another lender would save you money, or give you something your current lender won’t, such as extra borrowing for a new kitchen.
I’m Charles, a mortgage broker based in Fareham. “Product transfer or remortgage?” is one of the questions I’m asked most by homeowners across Fareham, Whiteley, Locks Heath, Portchester, Gosport and the rest of Hampshire. Here’s how I explain it.
What happens if you do nothing?
When your fixed or tracker deal ends, your lender will normally move you onto its standard variable rate (SVR) or a similar follow-on rate. These are usually higher than the deals on offer to new and existing customers, so your monthly payment can go up noticeably. And it can go up the very next month.
The good news is that you don’t have to wait until the last minute. Many lenders let you secure a new rate several months before your current deal ends, often up to around six months ahead. That gives you time to compare properly rather than rush.
What is a product transfer?
A product transfer is a new deal with your current lender. You stay where you are and simply 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 on your income and outgoings.
- It’s normally quick, and it can be a good fit if your circumstances have changed, for example a new job, lower income or a recent credit blip.
There’s no fee from me for arranging a product transfer.
What is a remortgage?
A remortgage means moving your mortgage to a different lender.
- You can choose from the wider market, which may mean a lower rate or better features.
- The new lender will check your income, your credit history and the value of your home.
- Some deals come with a basic valuation and legal work included, and some offer cashback, so the headline rate isn’t the whole story.
My fee for a remortgage is £299, and it’s only payable once you receive your full mortgage offer. You can see all my fees on my mortgages page.
Product transfer vs remortgage: which is better?
Honestly, it depends. The cheapest option isn’t always the one with the lowest rate. When I compare the two for you, I look at:
- The total cost over the deal. That’s the rate plus any arrangement fee, valuation or legal costs, less any cashback.
- Early repayment charges (ERCs). Can you switch now, or should the new deal start on the day your current one ends?
- Whether you want to borrow more. Your current lender may or may not agree to extra borrowing, and another lender might see it differently.
- Your plans. If you might move home in the next couple of years, a deal you can take with you (porting) and lower exit charges may matter more than a slightly lower rate. My moving home page explains porting.
- What’s changed for you. Self-employed now? Had a missed payment? A product transfer can be the easier route, but it’s worth knowing what else is out there first.
Sometimes your lender’s offer really is the best you’ll get, and I’ll tell you so. Sometimes another lender works out cheaper once everything is added up. Either way, you decide with the full picture in front of you.
Check your early repayment charges first
An early repayment charge is a fee your lender may charge if you leave your deal, or pay off a large lump sum, before the deal period ends. You’ll find it in your mortgage offer, your annual statement or your lender’s online account.
Usually the best plan is to time your new deal to start on, or just after, the date your ERC ends. Occasionally it’s worth paying the charge, for example if you need to raise money now. I’ll do the sums so you can decide.
Want to borrow more at the same time?
Lots of Hampshire homeowners use their renewal to release some equity. It might be for an extension or a loft conversion, to buy out an ex-partner, or to pay off a Help to Buy equity loan. Whether a lender will agree depends on your income, outgoings, credit history and your home’s value. You can get a rough idea with my mortgage calculators, and it’s well worth checking your credit report before a new lender does.
If you’re thinking of moving other debts onto your mortgage, think carefully. Your monthly payments might fall, but you could pay more interest overall, and the debt becomes secured on your home. I’ll always show you the full cost before you decide.
Don’t forget your cover
If your mortgage amount or term changes, your life cover or critical illness cover may no longer match it. I can review what you already have alongside your new deal. There’s never a fee to you for protection advice. See life cover and mortgage protection.
How a remortgage review with me works
- 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, and keep an eye on it until the new deal is in place.
Most reviews are done by phone, video or WhatsApp, so it fits around work. More detail is on my remortgage and product transfer page.
Frequently asked questions
When should I start looking at my options?
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 quicker than a remortgage?
Usually, yes. There’s normally no valuation or legal work, so it can be sorted in days rather than weeks. A remortgage takes longer, but it opens up the whole market.
Do you charge for a product transfer?
No. There’s no fee from me for a product transfer. Remortgages are £299, and that’s only payable once you receive your full mortgage offer.
Will a remortgage affect my credit score?
A new lender will run a credit check when you apply, and that check shows on your file. Before then, I can usually give you an idea of whether you’re likely to be accepted, so you don’t apply blind.
Can I switch to a different lender if I’ve already accepted my lender’s offer?
Often, yes, as long as the new deal hasn’t started yet. Check with your lender, and talk to me before your current deal ends so we have time to compare.
Do I have to go to a branch or an office?
No. I’m based in Fareham, but most of my remortgage clients across Hampshire never need to leave the house. We can talk by phone, video or WhatsApp.
Is your fixed rate 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.
Book a no-fee call · WhatsApp me on 07368 330822 · Use my contact form · Call 023 9355 2850