A product transfer can be an easy and cost-effective way of having your broker arrange your mortgage refinance. Below, we look at some of the frequently asked questions we hear about completing your product transfer to help you with the process.
Unlike a standard remortgage, a product transfer, sometimes known as a rate switch, is where you stay with your current lender and move onto one of their new rates on a like-for-like basis. This means there is no additional borrowing or significant changes to your original mortgage application.
Whilst you can often do this yourself, having your broker arrange your product transfer for you can be invaluable and offer you plenty of benefits.
Below, we run through some of the most commonly asked questions we hear from our product transfer clients:
How long does a product transfer take?
The product transfer process can be very quick, with many lenders allowing you to secure your offer on the same day as your initial application. Some may take up to four to five days, but this is still much quicker than a complete remortgage application. This means product transfers can be a great option for borrowers fast approaching the end of their current fixed rate term.
Is a product transfer a remortgage?
No. As mentioned above, a product transfer differs from a remortgage as you stay with your existing lender instead of securing a product from a new lender.
In most cases, a product transfer is a hassle-free way to secure your new finances, as no underwriting is carried out, and there is no need to supply any further documents. However, staying with your existing lender may mean you miss out on more competitive rates available on the market.
There are several benefits and drawbacks to consider when assessing whether a product transfer or remortgage is right for you, which you can read about here. To find out which is the most cost-effective for you, speak to our expert brokers.
What product transfer fees are there?
In most cases, lenders offer a range of product transfer rates. Some of these products may include an arrangement fee that can typically be added to the loan, and others will offer rates with no fees. One of the main benefits of a product transfer is that no valuation or legal fees are incurred, which often apply with a remortgage. This saving could make a product transfer a more cost-effective option for you.
When should I have my broker arrange my product transfer?
Even though the product transfer process is much quicker than a standard remortgage, you should still allow yourself enough time to explore all your refinance options. Depending on your lender, your broker can typically arrange your product transfer two to six months before your current deal ends.
Remember, if the lender reduces their mortgage rate pricing before your product transfer completes, they will, in most cases, allow you to move onto the new, cheaper option.
On the other hand, if mortgage interest rates increase before your product transfer completes, you don’t have to worry! Either way, securing your next mortgage rate in advance offers peace of mind and a great deal.
My product transfer options
To explore your product transfer options, get in touch with our expert mortgage makers. Our team of buy to let mortgage consultants will take the hassle out of the application process, allowing for a quick and easy product switch.
To speak to our team, call us on 0345 345 6788 or submit an enquiry here.
