Everything you need to know about product transfer vs remortgage in the UK.
A product transfer (sometimes called a rate switch) means moving to a new mortgage rate with your existing lender when your current deal ends. It is the simplest way to avoid falling onto your lender's standard variable rate (SVR) and is becoming increasingly popular, accounting for around 40% of all mortgage transactions in the UK.
The process is straightforward: your lender offers you a selection of new fixed or tracker rates, you choose one, and your mortgage switches to the new rate without any change to the amount borrowed or the remaining term. There is no property valuation, no affordability assessment, no legal work, and no conveyancing. Most product transfers can be completed within a few days.
A remortgage involves taking out a completely new mortgage with a different lender to replace your existing one. The new lender pays off your old mortgage, and you make payments to the new lender going forward. This gives you access to the entire mortgage market rather than just your current lender's products.
Remortgaging involves a full application, including affordability assessment, credit check, and property valuation. The new lender will arrange legal work (conveyancing) to transfer the mortgage. The process typically takes 4–8 weeks from application to completion, though it can take longer if the property valuation raises issues or the legal work encounters complications.
💡 Start comparing options 3–6 months before your current deal expires. Most lenders allow you to lock in a product transfer or remortgage rate well in advance, protecting you from rate increases while giving you time to shop around.
A product transfer is often the best option when your current lender's rates are competitive with the wider market, or when circumstances make a remortgage difficult. Choose a product transfer if your lender's rates are within 0.1–0.2% of the best market rates (the fee savings often offset a slightly higher rate).
It is also preferable if your income has decreased, you have changed jobs, or you have taken on new debts that might cause you to fail a new lender's affordability assessment. Similarly, if you have a complex mortgage (such as shared ownership, Help to Buy, or an unusual property type) that might be difficult to remortgage, a product transfer avoids potential complications. Some borrowers simply want a quick, hassle-free switch with minimal paperwork.
Remortgaging makes sense when you can access significantly better rates elsewhere, or when you need to change the terms of your mortgage. Consider a remortgage if other lenders offer rates 0.3% or more below your current lender's best product transfer rate. Even after accounting for arrangement fees and legal costs, a lower rate over 2–5 years can save thousands.
It is also worthwhile if you want to borrow more for home improvements, debt consolidation, or other purposes, to extend or reduce your mortgage term, or to consolidate debts into your mortgage for lower monthly payments. If your property has increased significantly in value, improving your LTV, remortgaging lets you qualify for better rates elsewhere.
⚠️ If you are on your lender's SVR, do not delay. SVRs typically charge 7–8.5%, compared to 4–5.5% for the best fixed rates. On a £200,000 mortgage, falling onto the SVR costs approximately £300–£500 per month more than a competitive fixed rate. Every month you delay costs you money.
To make the right decision, compare the total cost over the deal period for both options. For a product transfer, this is simply the monthly payment multiplied by the number of months. For a remortgage, add the arrangement fee, valuation fee, and legal costs to the total monthly payments.
For example, on a £250,000 mortgage over a 2-year fix: if your lender offers a product transfer at 4.8% with no fees (monthly payment £1,433, total £34,392), and another lender offers 4.4% with a £999 arrangement fee plus free legals and valuation (monthly payment £1,389, total £34,335), the remortgage saves only £57 over two years. In this case, the product transfer is arguably better because it is simpler and involves less risk.
However, if the remortgage rate is 4.0% (monthly payment £1,344, total £33,255), the saving is £1,137 even after the fee, making the remortgage clearly worthwhile.
A mortgage broker can compare your product transfer options against the best remortgage deals across the market and calculate which is cheaper overall. They handle all the paperwork and can often access exclusive rates not available directly from lenders.
Nesto matches you with FCA-regulated mortgage brokers who compare both product transfers and remortgages. Find a remortgage broker through Nesto and ensure you are on the best possible deal.
Get matched with an FCA-regulated remortgage broker in under 2 minutes — free, no obligation.
Find my broker — it's free →