Product transfer mortgages
Need a new mortgage deal? You don't have to switch lender
Getting a new mortgage deal doesn't have to mean switching lender. If you prefer, you can get a new deal from your current lender – known as a 'product transfer'. This route is often quicker, easier and sometimes cheaper than switching lender. Check if a product transfer could save you £1,000s by following our four simple steps.
Step 1: Weigh up product transfer pros and cons
If your current mortgage deal is due to end within the next six months then it's time to start preparing.
Do nothing and you'll roll on to your lender's standard variable rate (SVR). Right now, SVRs are typically around 6.5-7.5%, which is likely £100s or even £1,000s more expensive each month than what you currently pay.
To avoid this, you've got two options:
Get a new mortgage from your EXISTING lender – known as a 'product transfer'.
Get a new mortgage from a DIFFERENT lender – this is called 'remortgaging'.
The majority of homeowners choose the first option. Of the 1.6 million homeowners whose mortgage deal expired in 2024, 83% opted to get a new deal from their existing lender.
But whether a product transfer is right for you will depend on the pros and cons:
Product transfer PROS
✅ Interest rates are often competitive. See our comparison table below.
✅ Fewer fees compared to a remortgage. With a product transfer there will normally be an arrangement fee, but that might be it. Legal fees are uncommon and valuation is often free. Plus there'll be no exit fee, which is common with a remortgage (usually £150 to £200).
✅ Less paperwork. Provided you're not borrowing more money or changing any of the other terms of your mortgage (such as the length of the term).
✅ No affordability check. Lenders are unlikely to carry out an affordability check if you're borrowing the same amount for the same mortgage term – a boon if you'd struggle to pass the affordability test of a new lender. This also means no mark on your credit file.
✅ Quick and easy to apply. You can usually apply for a product transfer yourself online or by phone (a mortgage broker can arrange it for you too). Acceptance can be in days or less.
Product transfer CONS
❌ Limited choice. Your lender may only have a handful of deals to choose from.
❌Less likely to get the best rate. Out of all the lenders in the mortgage market, what are the chances that your existing lender is offering the best new deal rate?
❌ Extra checks are possible. If you ask to change the length of your mortgage term you might have to undergo an affordability check (more likely if you're shortening the term).
❌ Can't add or remove names from the mortgage. If you've got divorced, for example.
❌ Can't move home. If you want to move home it's a 'home-mover' mortgage you need (not a product transfer or remortgage) – see the top deals in our Mortgage best buys tool.
❌ Might not be able to borrow more. If you want to borrow more money, you'll need to undergo an affordability check. It's also likely the interest rate on the extra borrowing will be different to your main mortgage. So, it's best to discuss your options with a mortgage broker.
Some inspiration: 'I'm saving £53/month for the next two years'
Here are some successes from people who opted for a product transfer:
After reading your newsletter, I managed to get a product transfer deal with my existing lender, saving £53 a month for the next two years [£1,272 in total]. This is a great saving for me, with virtually no effort. Thank you so much.
My fixed-rate was due to end in the March but on your advice I learned I could contact my lender up to three months before the expiry date to secure a new deal. I did this and managed to get a new five-year deal at less than 2%.
I read your weekly email a day after HSBC messaged to say we could start looking at new rates (as we were within 90 days of our existing deal ending). We rang HSBC in the evening and selected a new rate, all confirmed by 9pm. Woke up in the morning to find interest rates had changed already – so a big thanks!
Got a success you want to share? Email us at successes@moneysavingexpert.com
Step 2: Compare product transfer rates to remortgage
If a product transfer sounds like it might be right for you, the next step is to start comparing interest rates.
For many years it used to be the case that interest rates on product transfer mortgages weren't particularly good – so you were almost always better off switching lender.
But after interest rates shot up in 2022, lenders worried that new borrowers would struggle to pass their affordability tests, so they increased efforts to retain existing customers.
As a result, these days rates for existing borrowers (product transfers) are often as good, if not better, than those available to new borrowers (remortgage). Some examples below:
60% LTV | 75% LTV | 90% LTV | ||||
|---|---|---|---|---|---|---|
Product transfer | Remortgage | Product transfer | Remortgage | Product transfer | Remortgage | |
Barclays | 3.97% | 4.16% | 4.07% | 4.18% | 4.78% | 4.64% |
HSBC | 3.81% | 4.14% | 3.89% | 4.25% | 4.55% | 4.8% |
Nationwide | 4.09% | 4.34% | 4.21% | 4.41% | 4.71% | 4.81% |
Virgin Money | 3.99% | 4.44% | 4.11% | 4.51% | 4.71% | 4.91% |
(1) Two-year fixed mortgage deals, excluding fees. Correct as of March 2026.
How to compare product transfer and remortgage deals
Here's how to compare product transfer and remortgage deals:
-
Find out your current lender's best deals. If you're with a major lender you can quickly check product transfer rates using our Mortgage best buys tool.
-
Check out the best deals that other lenders are offering. You can do this by selecting the 'remortgage' dropdown in our Mortgage best buys tool.
-
Contact a mortgage broker to make sure you haven't missed any deals. Some brokers have access to exclusive deals, plus they can advise you on which products have the features you're looking for and which lenders are more likely to accept you. For many, speaking to a broker is strongly advised. See our top broker picks.
Now you'll be in a position to compare whether a new deal from your current lender or from a different lender entirely is best. We've a host of mortgage calculators which can help.
Important. Even if you've found better rates elsewhere, in some situations a product transfer may still feel worth it. For example, if a product transfer's interest rate is only marginally worse and you don't want to go through the rigmarole of a full remortgage, or if a better rate elsewhere comes with expensive fees. Take the following scenario:
Let's imagine you're in the hunt for a new two-year fix and choosing between:
A 4.5% fix with a £1,000 fee from your current lender.
A 4.1% fix with a £2,000 fee from a new lender.
Ignoring fees initially, if your mortgage balance is £100,000 then on interest rate alone the 4.1% deal would cost around £23 a month less (£550 over two years). But when you factor in the £2,000 fee – and assuming this is paid up front – the 4.1% deal would actually work out £450 more expensive than the 4.5% deal over two years.
Got two mortgages to compare? Our calculator can help you crunch the numbers.
Quick question:
Is it possible to get a product transfer that lasts one year?
A small number of lenders – Barclays, Santander and TSB being the main ones – offer product transfers where the rate is fixed for one year.
But there are a few things to bear in mind when it comes to one-year fixes:
- Interest rates aren't always great.
- There are sometimes fees to pay.
If there are fees, be aware you'll face paying another tranche of fees to set up another new mortgage in 12 months – so two sets of fees in a short period.
This means you'd need the interest rate on a one-year fix to be competitive to make it worth it. For example, if the interest rate on a one-year fix is only marginally better than what you can get on, say, a two-year fix, then having to pay a second set of fees in 12 months' time is likely to wipe out any financial gain you'd make from being on a slightly better interest rate in the meantime.
You can use our Compare fixed-rate mortgages calculator to weigh up the cost of a one-year deal compared to a two, three or five-year deal (or longer).
Are there any benefits to a one-year fix?
A one-year fix may appeal if you think interest rates are likely to come down and don't want to be tied into today's interest rate for too long (if interest rates did fall significantly you'd be able to re-fix in 12 months at a lower rate).
Fixed deals also give you price certainty, as you know your monthly payments are fixed for the duration of the deal. This doesn't apply to short-term tracker mortgages – a possible alternative to a one-year fix – which have variable rates of interest (meaning your monthly payments can change).
You might also opt for a one-year fix if you plan to move home in the short term. But even if you think you'll move, you could still opt for a longer fix and simply port the deal if you do move (though it's not guaranteed your lender will agree).
Step 3: Apply for a product transfer (you can do this three to four months before your current deal ends)
If you've opted for a product transfer then the next step is to actually secure a new rate from your lender.
Many lenders let you lock in a product transfer three to four months before your existing deal is due to end. With a few you can lock in a new rate six months in advance.
How do I apply for a product transfer?
Locking in a product transfer is normally straightforward, your choices being:
-
Do it yourself. Normally you can apply with the click of a few buttons online or over the phone. Either way, the process is often quick and straightforward.
-
Use a broker. A broker can check if a product transfer is a good option and, if it is, apply on your behalf. See more on how to find a top broker.
Adding fees to your mortgage can give you more flexibility...
Make sure to ask your lender (or broker if using one) what fees you'll need to pay and whether you'd get these back if you ditched the product transfer before the rate kicks in.
While product transfers normally have fewer fees than a remortgage, it's likely you'll need to pay an arrangement fee. But, importantly, you should be able to choose when to pay this:
-
Pay fees upfront. If you have the cash to do this, it might seem like a good idea to ensure you avoid paying any interest on the fees. HOWEVER, the crucial drawback is that if a better rate comes up after you've paid the fee (but before the rate you've reserved kicks in), you probably won't get your money back if you cancel in order to switch rates. For that reason, the better and more flexible option for most is...
-
Add fees to your mortgage balance. By reserving a product transfer in advance, you're protected from rates going up before your new deal kicks in – and you can avoid paying for this protection up front if you add the fees to your mortgage balance. Doing this can also make it easier to ditch the new rate if interest rates improve (see Step 4).
The trade-off is that adding fees to your mortgage balance will slightly increase how much you repay overall. Use our Mortgage Calculator to see the impact of adding fees.
If you don't want to increase how much you'll repay, one solution is to make a mortgage overpayment (equivalent to the size of the fees) as soon as the new product transfer rate kicks in. Make sure to first check that your lender allows overpayments (most do). For more on overpayments and their impact, see Should I overpay my mortgage?
Step 4: Locked in? Still keep an eye on mortgage rates
If you've locked in a product transfer early, it's tempting to sit back and wait until the new rate starts. DON'T.
While reserving a deal in advance protects you against rising interest rates, in the scenario that rates improve then it's possible you'll have locked in at a poor rate of interest.
Therefore, after you've locked in, keep an eye on mortgage rates to see if anything better emerges – right up until the final couple of weeks before your new deal starts. If it does, you might be able to switch penalty-free and save money by being on a better interest rate.
How to check depends on whether you applied direct to the lender or used a broker:
Applied for a product transfer using a mortgage broker?
If you applied for your product transfer through a broker, ask the broker to let you know if rates improve (if it says it can't, you'll have to keep an eye out yourself).
Some big brokers – such as Habito*, Mortgage Advice Bureau* and Trinity Financial* – say they'll automatically keep an eye out for better rates. So if something better comes along, they'll inform you and ask if you want to switch interest rates. Another big broker, L&C Mortgages*, does the same through its specific 'rate check' service.
It's unlikely all brokers take the same approach, so make sure you ask. If you spot a rate yourself, get in touch with your broker and ask them to look into it for you.
Applied for a product transfer directly to the lender?
If you applied for your product transfer directly to the lender, you'll need to keep an eye out yourself whether better rates emerge in the meantime.
As well as checking what rates other lenders are offering, check whether your current lender changes the rates it's offering too. MSE Helen applied for a product transfer directly to her lender but it didn't tell her a couple of weeks later that it had launched better rates. In other words, it's very unlikely your lender will get in touch about this.
You can check and compare rates using our our Mortgage Best Buys tool.
Don't leave it too late to ditch a locked-in rate
If you find a better rate than the one you've reserved and want to switch, make sure you ask at least 14 days before your reserved rate is set to start (or you may find it's too late).
Ditching a locked-in product transfer can be penalty free. However, as we've explained, this is more likely to be the case if you didn't pay any fees up front when reserving the rate.
Be aware that once an interest rate has officially started, you'll almost certainly have to pay an early repayment charge if you decide to ditch the deal (many lenders consider a deal to have started 14 days before the new rate kicks in), something which can cost £1,000s.
For this reason, be mindful if you decide you'd prefer a remortgage with a new lender over a product transfer. If your current lender doesn't realise you've applied for a remortgage, and you don't tell it you want to cancel the product transfer, you may end up with two new deals starting simultaneously (and have to pay an early repayment charge to cancel one).
Looking for more mortgage help?
Should I get a 5/10-year fix? Pros and cons.
Mortgage types explained. How fixes and trackers work.
Mortgage Best Buys. See today's top deals.
Getting ready to remortgage. How to prepare.
Should you remortgage. Reasons for and against.
Share this guide?
