In this guide
Lenders make product transfers deliberately easy — a few clicks in an app, no solicitor, done in days. Easy is not the same as cheap, though. The only way to know whether your lender's retention deal is genuinely competitive is to compare it against what the rest of the market would offer you. Sometimes staying wins comfortably; sometimes it quietly costs you hundreds of pounds a year.
What each route actually involves
A product transfer (PT) is a new deal with your currentlender. For a like-for-like switch there is usually no new affordability assessment, no conveyancing, and often no valuation (or just a desktop one). It can complete in days, and it is available even if your circumstances have worsened since you took the mortgage out. The trade-offs: you can only choose from one lender's range, borrowing more requires a separate further advance (with affordability checks), and you cannot change the names on the mortgage.
A remortgage moves the mortgage to a new lender. That means a full application — affordability and credit checks, a valuation and legal work (free-legals deals are common) — and typically takes four to eight weeks. In exchange you get whole-market rate choice, the option to release equity, change the term, add or remove a name (a transfer of equity), or consolidate debt where advised. Our remortgage affordability guide covers how the new lender will assess you.
Moving house rather than just moving deal? That is a different decision again — see porting your mortgage.
At a glance
Speed: product transfer completes in days; remortgage typically 4-8 weeks.
Checks: PT — usually none for like-for-like; remortgage — full affordability and credit assessment.
Costs: PT — usually just any product fee; remortgage — product fee plus valuation and legal work (often covered by free-legals deals).
Choice:PT — one lender's range; remortgage — the whole market.
Flexibility: PT — same balance, same names; remortgage — release equity, change term, add or remove a name.
When a product transfer usually wins
Your circumstances have deteriorated. Recently self-employed, income down, credit blips, new childcare costs — a new lender would assess all of it, but a like-for-like PT generally sails through without an affordability check. If you suspect you would not pass a fresh assessment, the PT is your safety net.
Your balance is small. Below roughly £50,000, the fixed costs of switching (fees, time, any legal costs not covered) tend to outweigh what a slightly lower rate can save. The smaller the loan, the less a rate difference is worth in pounds.
You are short on time. If your deal ends in a few weeks, a PT completes in days while a remortgage may not — and avoiding even one month on the standard variable rate is usually worth more than a marginal rate improvement.
One caution: do not assume a worsened position rules a remortgage out before checking. Lenders differ enormously on how they treat self-employment history, variable income and credit blips — the same applicant can be declined by one lender and offered a strong deal by another. The PT is the fallback, not necessarily the first choice.
When remortgaging usually wins
Your finances are strong. Good income, clean credit and decent equity put the whole market within reach — and retention deals are not always priced to beat it.
Your balance is large. On bigger loans, even a 0.2-0.3% rate difference outweighs typical switching costs within the deal period (the worked example below shows where the line falls).
You need the mortgage to change. Releasing equity for home improvements, extending or shortening the term, adding or removing a name, consolidating debt with advice — none of these fit inside a simple PT.
Your LTV band has improved.If your property has risen in value or you have overpaid, you may have dropped into a cheaper loan-to-value band — say from 85% to 75%. A new lender's valuation captures that improvement; a desktop PT valuation sometimes does not, leaving you priced in a more expensive band than you deserve.
Is your lender's offer actually competitive?
Free 2-minute check across 60+ UK lenders — compare the market before you accept the transfer.
Start My Free CheckWorked example: the balance decides it
The rates below are illustrative, not current products — the point is the maths, which works the same at any rate level.
£200,000 vs £400,000: same rate gap, opposite answers
Scenario: 20 years left, PT at 4.3% vs remortgage at 4.0% with a £999 fee and free legals.
On a £200,000 balance:
Monthly payment ≈ £1,244 (PT) vs ≈ £1,212 (remortgage) — about £32 a month. Over a 2-year deal that is ≈ £768 saved, against a £999 fee. The product transfer wins.
On a £400,000 balance:
The same 0.3% gap is now worth about £64 a month — ≈ £1,540 over two years, comfortably clearing the £999 fee. The remortgage wins.
Same rate gap, same fee — the answer flips purely on loan size. Always do this sum with your own balance before accepting either offer.
Two refinements worth adding. First, compare total cost over the deal period (payments plus fees), not just the headline rate. Second, if you are also planning to overpay or pay the mortgage off early, factor in each deal's overpayment allowance and early repayment charges — flexibility can be worth more than a few basis points.
Timing: when to start and how to avoid the SVR
Start reviewing around six months before your fixed deal ends. Most lenders let you secure a new deal three to six months ahead of expiry — and many let you re-select if rates fall before completion, so locking early is usually a one-way bet: protected if rates rise, free to improve if they fall.
The outcome to avoid is drifting onto the standard variable rate (SVR), typically around 6.5-8% at the time of writing. On a £200,000 balance, even one month on an SVR instead of a competitive fixed rate can cost several hundred pounds.
A practical sequence that captures the best of both routes: at six months out, get a whole-of-market view of what a remortgage would offer you; at three to six months out, secure your lender's best PT deal as a backstop (most lenders let you cancel a transfer before it completes without penalty); then switch to the remortgage if the market still beats it nearer the time. You keep the safety of a guaranteed new rate while staying free to take the cheaper option.
Finally: both routes can be arranged through a broker, and a broker can place your lender's PT offer alongside the open market. That comparison is the whole game — which is exactly why checking your figures across 60+ lenders before you decide is worth two minutes of your time.
Frequently asked questions
Does a product transfer need an affordability check?
Usually not. For a like-for-like switch — same balance, same term, no extra borrowing — most lenders do not run a new affordability assessment or full credit check. That makes a product transfer the natural route if your income has fallen, you have become self-employed recently, or your credit profile has worsened since you took the mortgage out.
Can I borrow more with a product transfer?
Not within the transfer itself. A product transfer keeps your balance and term as they are. If you want to borrow more with your current lender you would apply for a separate further advance, which does involve affordability checks and is often priced at a different rate. If you need to release a larger sum, a remortgage to a new lender is usually the cleaner route.
How early can I lock in a new rate?
Most lenders let you secure a new deal three to six months before your current one ends, whether by product transfer or remortgage. Many will also let you re-select if rates fall between securing the deal and completing. A sensible rhythm is to start reviewing around six months out so you never roll onto the standard variable rate.
Is a product transfer bad for my credit score?
No. A like-for-like product transfer typically involves no new hard credit search, so it leaves your credit file untouched. A remortgage to a new lender does involve a full application and credit check, but a single mortgage application is normal activity and not damaging in itself for most borrowers.
Can a broker arrange a product transfer?
Yes. Brokers can arrange product transfers with most lenders, often earning a smaller fee for doing so. The real value is that a broker can put your lender's transfer offer side by side with the whole market — so you only stay if staying genuinely wins.
Last updated: June 2026
