The day your fixed-rate mortgage deal ends is a big day, and it can feel a little scary. You’ve been on a great rate, and now you have to make a choice. Should you stay with your current lender by doing a mortgage product transfer, or should you switch to a new one by remortgaging? It’s a question many homeowners face, and the decision you make could save you thousands of pounds.

So, how do you decide? Let’s break down the two main options you have when your deal is about to expire: a mortgage product transfer and a full remortgage. Understanding the pros and cons of each is the first step to making a smart financial move.

What is a Mortgage Product Transfer?

A mortgage product transfer is a simple process. It’s when you choose a new rate from your current lender’s product range, without changing your loan amount or lender. Think of it as a loyalty reward for staying put. The process is often incredibly straightforward.

• The Upside: First of all, it’s fast and easy. There’s typically no affordability check, no legal fees, and no need for a new property valuation. Consequently, you can often secure a new rate in a matter of days. This makes it a fantastic option if your financial situation has changed since you first took out your mortgage or if you simply want a hassle-free experience.
• The Downside: However, the major drawback is that you are limited to your current lender’s products. You might be missing out on a much better deal elsewhere in the market.

What is a Remortgage?

A remortgage is when you switch your entire mortgage to a new lender. It’s a bit like starting over, but for a very good reason: to access a wider range of competitive products across the entire market.

• The Upside: For example, you could get a lower interest rate, change your mortgage term, or even borrow more money to fund home improvements. A new valuation might also give you a lower Loan-to-Value (LTV) ratio, unlocking better rates. Furthermore, remortgaging offers the most flexibility to find the perfect deal for your long-term goals.
• The Downside: On the other hand, remortgaging involves a full application process. You will need a new credit check, a property valuation, and legal work, all of which come with fees and a longer completion time.

So, Remortgage or Mortgage Product Transfer?

The choice ultimately depends on your specific circumstances.

If you are looking for a quick and easy solution, a mortgage product transfer is probably the best route. It’s perfect if you’re happy with your current lender and don’t need to borrow more money.

Conversely, if you’re determined to find the absolute best rate on the market, need to borrow additional funds, or your property has increased significantly in value, then a remortgage is the way to go. You will have more paperwork and some fees, but the long-term savings can be substantial.

Don’t Make this Decision Alone

Navigating these options can be complicated, and picking the wrong one could cost you. The key is to get expert advice tailored to your unique financial situation.

Ready to get the best deal for your mortgage? Contact us today, and let’s find the right solution for you.