Product Transfer vs Remortgage: What's the Difference?

A product transfer switches you to a new deal with your current lender - it's faster (1-2 weeks), has no fees, and requires minimal paperwork. Remortgaging moves you to a new lender, takes 4-8 weeks, may have fees, but gives access to the whole market for potentially better rates. Choose product transfer for speed and simplicity; remortgage if you want the best rate or need to borrow more.

Learn more about when to remortgage in our detailed guide.

Learn more about what is svr in our detailed guide.

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Learn more about remortgage guide in our detailed guide.

What is a product transfer?

A product transfer (also called a rate switch) is when you switch to a new mortgage deal with your existing lender without changing lender. It's simpler than remortgaging - no legal fees, no valuation, minimal paperwork. Your lender already knows your property and payment history, so the process is much faster.

Is a product transfer better than remortgaging?

It depends. Product transfers are faster and cheaper (no fees typically), but remortgaging gives you access to the whole market - potentially better rates and the ability to borrow more. If you just want to switch rates with minimal hassle, a product transfer works. If you want the best deal or need to release equity, remortgage.

Can I get a better rate by remortgaging to a new lender?

Often yes. Remortgaging gives you access to 90+ lenders rather than just your current one. Competition means you may find rates 0.2-0.5% lower. However, factor in arrangement fees (£500-£2,000), legal costs (£500-£1,500), and valuation fees. A broker can calculate which option saves more overall.

How long does a product transfer take?

Product transfers typically complete in 1-2 weeks, sometimes same day. There's no legal work or valuation needed. Remortgaging takes 4-8 weeks on average due to legal work, valuations, and new lender checks. If your deal ends soon, a product transfer may be safer to avoid SVR.

Can I borrow more with a product transfer?

Usually no - product transfers keep your existing loan amount. If you want to borrow more (for home improvements, debt consolidation, etc.), you'll need to remortgage. Some lenders offer 'further advances' alongside product transfers, but rates are often higher than remortgaging.

Do I need a broker for a product transfer?

Not necessarily - you can do product transfers directly with your lender online or by phone. However, a broker can check if you'd be better off remortgaging elsewhere. Good brokers compare your lender's product transfer rates against the whole market to ensure you're getting the best deal.

Quick Answer

Should I Do a Product Transfer or Remortgage?

Last reviewed: December 2025

Reviewed by Jay Sabine – CeMAP Qualified – 29 years experience

Product transfer for speed and simplicity; remortgage for best rates or to borrow more. A broker can calculate which saves you more.

When your mortgage deal ends, you have two main options. A product transfer (rate switch) keeps you with your current lender but moves you to a new deal - it's quick (often 1-2 weeks), has no fees, and requires minimal paperwork since your lender already knows you. Remortgaging moves you to an entirely new lender, giving you access to the whole market (90+ lenders) and potentially better rates. However, remortgaging takes 4-8 weeks, may involve arrangement fees (£500-£2,000), legal costs (£500-£1,500), and valuation fees. The right choice depends on your priorities: speed and convenience favour product transfers; potentially saving hundreds per year and borrowing more favour remortgaging.

Your home may be repossessed if you do not keep up repayments on your mortgage. Seek advice before making decisions.

Key Points

1Product transfer: Same lender, new deal, 1-2 weeks
2Remortgage: New lender, whole market access, 4-8 weeks
3Product transfers have no fees typically
4Remortgaging may have £1,500-3,500 in fees
5Remortgaging needed if you want to borrow more
6Both better than staying on SVR (7-8%)

Eligibility Criteria

Product transfer: Generally available if payments up to date
Remortgage: Need to pass new lender's affordability checks
Product transfer may not require credit check (lender-dependent)
Remortgage requires full application and credit check
Both require your deal to be ending soon or on SVR

Typical Timeframe

Start comparing 3-4 months before your deal ends. Product transfers can complete in days; remortgages need 4-8 weeks minimum. Many mortgage offers are valid 3-6 months, so you can lock in early.

Next Steps

1Check when your current deal ends
2Log into your lender's website to see product transfer rates
3Compare with current market rates from other lenders
4Calculate total cost including any remortgage fees
5Speak to a broker to confirm which option saves more

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Should I Do a Product Transfer or Remortgage?

Key Points

Eligibility Criteria

Typical Timeframe

Next Steps

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