Many borrowers choose to do their product transfers themselves, be it for their own home or investment properties. However, our latest case study reveals that you could save thousands by having your broker arrange your product transfer for you.
A product transfer means taking a new rate from your existing lender on a like-for-like basis (i.e., no additional borrowing or substantial changes to your mortgage application). These can be a great alternative to a typical remortgage, which can be challenging and expensive for borrowers. Like a remortgage, a product transfer prevents you from falling onto your lender’s more expensive Standard Variable Rate (SVR) at the end of your fixed mortgage product term.
As with all types of property finance, there are a number of benefits and drawbacks to product transfers to consider before deciding whether it’s the right option for you. However, as one of our clients found, using a broker is essential for this borrowing option.
Case Study: Client saves over £1,000 on mortgage by having a broker arrange their product transfer
The Client
An existing client of MFB exploring remortgage and product transfer options for their own home.
The Finance
Our client reviewed the product transfer rates on offer by approaching their existing lender directly. Many lenders, including Highstreet banks like this one, have set product transfer ranges; however, not all lenders offer them.
Following a catch-up call with our residential expert to explore all their options, we advised the client that we could in fact access cheaper rates with their existing lender than they could by going direct. With the client favouring the least hassle route, and the process taking less than 20 minutes, this one phone call to MFB saved the client, in his own words, “enough to have a week all-inclusive in the sunshine”.
Here are the details of how much we saved our client:
Product Transfer offered to our client by their existing lender:
Rate: 4.89% 2-year fixed
LTV: 60%
Arrangement Fee: £999 to be paid upfront
Monthly mortgage repayments: £1,840
Remortgage rate offered to MFB by our client's existing lender:
Rate: 4.74% 2-year fixed
LTV: 60%
Arrangement Fee: Free
Monthly mortgage repayments: £1,812.94
Total savings: This is a monthly saving of £27.06, which, over the two years of the initial mortgage rate, plus the savings on arrangement fees, adds up to a substantial saving of £1,667.
How can I save on my product transfer?
As demonstrated above, it’s essential to review your options with one of our whole-of-market mortgage brokers before making any property finance decisions. You may find that your lender offers more competitive rates to brokers such as MFB than you can access directly.
Alternatively, it may be that a remortgage option is better for you. Our expert brokers can assess your circumstances to find the right mortgage deal that best suits your needs and hopefully save you money in the process.
Search and compare mortgage rates
To review your mortgage options and see what types of rates you could access for your own home or for your property investments, head over to our mortgage calculator page. Or you can speak to one of our expert mortgage brokers by calling 0345 345 6788 or submit an enquiry here.
