Product Transfer/New Deal
Looking to transfer your mortgage? Grosvenor May can help review your current mortgage deal to ensure you’re getting the best deal.
We will review your current circumstances and provide tailored advice personnel to you ensuring we find you the best deal possible. If we recommend you to stay with your existing lender, this is simply a product transfer. If we recommend a new lender, this is classed as a remortgage or new deal. See below some handy tips and information on product transfer.
A product transfer mortgage is when you change mortgage deals with your current lender rather than remortgaging with a different provider. Product transfers don’t usually involve a full valuation of the property if the amount borrowed is unchanged, and this means that they can be very quick to complete.
If you’re refinancing with your current mortgage lender to borrow more, this would be classed as a specific type of product transfer known as a further advance. These agreements usually involve more eligibility assessments, a valuation and legal red tape.
Although product transfers can be relatively quick, taking your lender up on one without checking whether there’s a better interest rate deal elsewhere is not recommended. Speaking to a mortgage broker who has access to the entire market before you commit to a deal is strongly advised.
A product transfer mortgage is when you change mortgage deals with your current lender rather than remortgaging with a different provider. Product transfers don’t usually involve a full valuation of the property if the amount borrowed is unchanged, and this means that they can be very quick to complete.
If you’re refinancing with your current mortgage lender to borrow more, this would be classed as a specific type of product transfer known as a further advance. These agreements usually involve more eligibility assessments, a valuation and legal red tape.
Although product transfers can be relatively quick, taking your lender up on one without checking whether there’s a better interest rate deal elsewhere is not recommended. Speaking to a mortgage broker who has access to the entire market before you commit to a deal is strongly advised. Contact our team today.
They aren’t really any different, except a product transfer is a remortgage specifically with your current lender. Used generally, the term ‘remortgage’ can refer to refinancing with either your current lender or another one, but it wouldn’t be a product transfer if you were switching lenders.
In terms of the process involved, remortgaging with another lender can take longer than a product transfer and there may be extra steps to complete, especially if you’re borrowing extra. But with a product transfer, you’re limited to just one set of mortgage deals.
Here are some advantages and disadvantages of a product transfer versus remortgaging with another mortgage lender.
Advantages
- Product transfers usually involve less work for the borrower
- There’s less paperwork to fill out
- A full valuation might not be needed
- Borrowers usually exempt from legal fees
Disadvantages
- Getting the best deal is less likely as you’re limited to one lender’s product range
- Your lender won’t offer impartial, independent advice about your remortgage options
- You might find it more difficult to get approved if your circumstances have changed
- Being declined for a remortgage could be more costly without a broker to fall back on
In summary, the main benefit of agreeing to a product transfer over a remortgage is that it can be quicker to complete. Although you might also pay out less in upfront fees, keep in mind that you could end up out of pocket overall if you lock yourself into a deal with your current mortgage lender without checking whether there is a better one available elsewhere.
Yes, you can. A product transfer is essentially the same as a remortgage, so if you’d like to release some equity during the process – perhaps for home renovations or to consolidate other debts – then you can apply to do that at the same time.
Taking your mortgage lender up on a product transfer without checking what other remortgage deals are out there is not recommended. It’s strongly advised that you speak to a mortgage broker and ask them to search the entire market for you to see what’s on offer.
If you talk to a mortgage broker before settling on a remortgage option, this will open an entire market of products up to you. If the rates your current lender is offering really are the best available, your broker is obliged to tell you this and advise you to stick with that mortgage provider.
Using our free mortgage broker-matching service you can speak straight away to the right broker by simply making an enquiry online. They’ll be able to help with:
- Downloading and optimising your credit reports giving you a better chance of approval with another mortgage lender offering better rates
- Preparing any necessary paperwork making the application process seamless
- Finding the right mortgage lenders offering the best remortgage rates available across the whole market
Not always. If the lender is confident that your circumstances are unchanged, some will forgo credit checks on a straightforward product transfer. But if you were to inform them that there have been significant changes to your credit report, they might assess you again.
If you are applying for a product transfer to borrow more money on your mortgage, the chances of the mortgage lender checking your credit file are higher.
GOT A QUESTION?
Get in touch with our team.