Product Transfer Mortgage
When it comes to mortgages, homeowners often think of remortgaging as the primary option for finding better deals. However, a product transfer mortgage offers a simpler, hassle-free alternative that can still provide significant financial benefits.
What is a Product Transfer Mortgage?
A product transfer mortgage involves switching your existing mortgage to a new product offered by your current lender rather than moving to a different lender. You stay with the same lender but opt for a different deal, such as a new fixed-rate or variable-rate mortgage.
This option is particularly appealing for those who want to avoid the paperwork and credit checks typically associated with remortgaging.
How Do Product Transfer Mortgages Work?
If you're not looking to borrow additional funds, a product transfer mortgage is a straightforward process.
Typically, the loan amount and mortgage term remain unchanged when transferring a mortgage, which often results in a faster transition. In fact, some homeowners can complete the switch in just a few days.
Unlike remortgaging, a product transfer doesn't require a new property valuation, saving both time and effort. Additionally, since the fundamental terms of the mortgage stay the same, your lender may not conduct a credit check. This can be particularly beneficial if your circumstances have changed since you originally secured your mortgage.
The process is straightforward:
- Eligibility Check: Your lender will assess whether you qualify for a product transfer.
- Review Options: The lender presents you with available mortgage products that suit your circumstances.
- Choose a Product: After reviewing the terms and rates, you select the best option for your needs.
- Switch: Your existing mortgage is seamlessly transitioned to the new product, often without legal or valuation fees.
