Remortgaging and product transfers are two options to consider when your mortgage deal is coming to an end or your monthly payments are increasing. Remortgaging involves switching your existing mortgage to a new lender or renegotiating the terms of your existing mortgage with your current lender. Another option to consider when your mortgage deal is coming to an end is a product transfer. In this blog post, we’ll explore the differences between remortgaging and product transfers and help you decide which option is best for you.
Remortgaging involves moving your mortgage to a new lender or renegotiating the terms of your existing mortgage with your current lender. The main reason to remortgage is to save money. If your current mortgage deal is coming to an end, you may find that your payments increase significantly. By remortgaging to a new lender or renegotiating with your current lender, you may be able to secure a better deal and reduce your monthly payments. You can also release equity from your property or switch to a different type of mortgage.
Remortgaging can involve a lot of paperwork and fees, including arrangement fees, valuation fees, and legal fees. You’ll also need to pass affordability and credit checks, which can take time and may affect your credit score.
A product transfer is an option that allows you to switch to a new mortgage deal with your existing lender. This means you don’t need to switch to a new lender and don’t need to go through the same affordability and credit checks. A product transfer can be a quick and easy option if you’re happy with your existing lender and want to switch to a new mortgage deal. It can also be cheaper than remortgaging, as there may be no legal fees, and the valuation fee could be waived.
However, product transfers may not offer the same range of mortgage products as remortgaging. You may be limited to the deals your current lender offers, which may not be as competitive as those offered by other lenders. Additionally, you won’t be able to release equity from your property or switch to a different type of mortgage without going through a full remortgage.
Which Option is Best for You?
Deciding whether to remortgage or opt for a product transfer depends on your individual circumstances. If you’re looking to release equity or switch to a different type of mortgage, remortgaging may be the better option. However, if you’re happy with your current lender and want to switch to a new deal quickly and easily, a product transfer may be the better choice.
Remortgaging allows you to switch to a new lender or renegotiate with your current lender, while product transfers allow you to switch to a new deal with your existing lender. Both options have their advantages and disadvantages, so it’s important to consider your individual circumstances and shop around to find the best deal for you.
If you’re not sure which option is best for you, our advisors are here to help. We can help you assess deals from across the whole of the market and give you an accurate breakdown of the costs associated with either remortgaging or doing a product transfer – so you can make the best decision to suit your circumstances.
Speak to our team today for a FREE mortgage review!