Remortgaging and Product Transfers
When an existing mortgage deal is ending or circumstances have changed, the available routes may include a product transfer with the current lender or a remortgage to a new lender. Costs, affordability, property value and mortgage terms all matter.
What Does Reviewing Your Mortgage Mean?
A remortgage normally means replacing the current mortgage with a new mortgage, often from a different lender. A product transfer means moving to another product with the existing lender while keeping the mortgage with that lender.
Either route may change the interest rate, payment, fees or mortgage conditions. Staying on the current arrangement can also be an option. The overall cost and features matter, not only the headline rate or monthly payment.
At a Glance — Worth Checking First
- Current deal end date and follow-on rate
- Outstanding balance and remaining term
- Early repayment charge and exit fee
- Current property value and resulting LTV
- Whether additional borrowing is needed
- Changes to income, spending, credit or household circumstances
Model Your Remortgage Figures
Check your updated Loan-to-Value tier and calculate monthly payments on new interest rate brackets.
Check the Current Mortgage First
These details can usually be found on a mortgage statement, offer document or lender online account.
- Current rate and rate type
- Deal end date
- Follow-on rate
- Outstanding balance
- Remaining term
- Early repayment charge and its end date
- Permitted overpayments
- Portability and other important features
- Any separate unsecured loan or linked element
Do not assume changing mortgages will save money. Exit charges, product fees, legal work, valuation, a longer term or adding fees to the loan can outweigh a lower rate.
Product Transfer Compared With Remortgaging
Product Transfer
- Remains with the current lender
- Lender process and available products vary
- May involve fewer checks or less legal work in some circumstances
- Does not automatically mean the cheapest or most appropriate overall option
- Additional borrowing or other changes may require a separate assessment
Remortgage to a New Lender
- New mortgage application
- Affordability and credit assessment
- Property valuation and legal work may be required
- Fees and early repayment charges may apply
- Access depends on applicant, property and lender criteria
A partner adviser can compare relevant routes after assessing the individual's circumstances. TFS does not perform that comparison.
Reasons People Review Their Mortgage
Current deal approaching its end
Considering a different rate type or mortgage feature
Changing the term or repayment basis
Borrowing more for a stated purpose
Household, income or credit circumstances have changed
Equity, Valuation and Affordability
Loan-to-value compares the mortgage balance with the lender's accepted property value. A lender may use its own valuation rather than an estate-agent estimate or online valuation.
A new lender normally assesses income, expenditure, debts, dependants, credit history and the property. Criteria differ, and an existing mortgage does not guarantee that a new application will be accepted.
Mortgage balance + lender valuation Loan-to-value Lender criteria and affordability Possible application outcome
This page does not calculate or estimate an outcome.
Changed Income, Self-Employment or Credit History
Income or Employment
A change of job, hours, employment type, retirement plans or self-employed income can affect evidence and affordability. Requirements vary by lender and business structure.
Credit History
Recent missed payments, defaults, court judgments or higher borrowing can affect availability. This does not mean a specialist lender will necessarily accept the case — see our bad credit mortgages page for more general information.
Property or Household
Changes to occupants, dependants, property condition, lease length or intended use may matter to a lender.
Borrowing More and Debt Consolidation
Some people consider increasing secured borrowing for home improvements, another major cost or to repay other debts. The lender will assess the purpose, affordability and property.
Debt Consolidation — Important Considerations
Moving short-term or unsecured debts onto a mortgage can reduce monthly outgoings but may increase the total amount repaid by extending the repayment period. It also changes unsecured borrowing into debt secured against the home. Advice should consider the cost over the full term, fees, behaviour that created the debt and available alternatives.
Considering a Debt Consolidation Remortgage?
Compare cash flow savings against lifetime interest, further advances vs second charges, and lender criteria.
Your home may be repossessed if you do not keep up repayments on your mortgage.
Costs and Timing
- Early repayment charge
- Exit or redemption fee
- Product or arrangement fee
- Valuation or survey fee
- Legal or conveyancing fee
- Adviser fee where applicable
- Costs of changing insurance or linked products
- Interest or fees added to the mortgage
- Cost effects of extending the term
Start by checking the current deal end date and any early repayment charge. Product reservation periods and completion times vary, so we do not publish a universal month count or promise completion before the current deal ends.
Typical Process
This is a general process illustration. Steps 3 to 6 are carried out by the partner adviser or lender, not TFS.
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Review the current mortgage and charges.
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Consider staying, transferring or remortgaging.
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If using an adviser, complete their fact-find and discuss needs.
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4
Apply to the selected lender if proceeding.
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5
Complete valuation, legal work and lender checks where required.
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6
On completion, the new mortgage repays the previous mortgage.
Frequently Asked Questions
These answers explain common remortgaging and product-transfer terms in general. The mortgage offer and product terms determine how an individual mortgage works.
What is the difference between a product transfer and a remortgage?
A product transfer usually means changing to another product with the existing lender. A remortgage generally means replacing the mortgage, often with another lender.
The checks, fees, valuation requirements and available products can differ. Remaining with the current lender is not automatically cheaper or more suitable, and moving lender is not automatically better.
When should I start reviewing my current deal?
Starting early enough to check the deal end date and any early repayment charge can help avoid an unplanned move to the reversion rate.
Product reservation periods and completion times vary by lender, so there is no single date that is right for everyone.
Will I have to pay an early repayment charge?
An ERC may apply if the current mortgage is repaid, switched or changed during a stated charge period. It is often calculated by reference to the outstanding balance, but the method varies by lender.
The mortgage offer or illustration should show the amount and any exit fee that applies.
Does a lower rate always mean a lower overall cost?
Not necessarily. Exit charges, product fees, legal work, valuation fees, a longer term or adding fees to the loan can outweigh the benefit of a lower headline rate.
The total cost over the relevant period, not only the rate, determines whether a change is worthwhile.
Will a remortgage involve affordability and credit checks?
Yes, a remortgage is normally treated as a new mortgage application, so a new lender will usually assess income, expenditure, debts, dependants, credit history and the property.
There is no universal promise that a soft search can always be used before a full application, as this depends on the lender.
Can I remortgage if my income has changed or I am self-employed?
It may be possible, but lenders vary in the evidence and business structures they accept, and requirements differ between employed and self-employed applicants.
A change of job, hours, employment type or retirement plans can also affect the evidence needed.
Can I remortgage with a changed credit history?
Recent missed payments, defaults, court judgments or higher borrowing can affect availability, and this does not mean a specialist lender will necessarily accept the case.
See our bad credit mortgages page for further general information on this topic.
Can I borrow more when remortgaging?
Additional borrowing may be possible, but the lender will assess the purpose, affordability and property, and it is not guaranteed.
Increasing the loan amount increases the secured borrowing against the home and may increase the total cost of the mortgage.
What should I consider before consolidating debts?
Moving short-term or unsecured debts onto a mortgage can reduce monthly outgoings but may increase the total amount repaid by extending the repayment period. See our dedicated debt consolidation remortgage guide for comprehensive details.
It also changes unsecured borrowing into debt secured against the home. Your home may be repossessed if you do not keep up repayments on your mortgage.
Can I change the mortgage term or repayment type?
A change to the term or repayment basis is not automatically available and would need to be accepted by the lender as part of an application or product change.
A longer term can lower the monthly payment while increasing the total interest paid over the life of the mortgage.
How long does a remortgage take?
Timing varies between lenders and depends on valuation, legal work and the checks required, so we do not publish a universal completion time.
Starting the process in good time before the current deal ends, or before any early repayment charge period expires, allows more time to consider the available routes.
Want to Discuss an Existing Mortgage?
Tell us whether a current deal is ending, circumstances have changed or you are considering another mortgage route. TFS will pass the enquiry to Anderson Reed, whose qualified advisers may contact you.
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Send basic contact details and a brief outline
The form takes only a moment and does not commit you to applying for a mortgage.
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TFS securely passes the enquiry to Anderson Reed
Anderson Reed is the FCA-authorised firm named in our disclosure.
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An Anderson Reed adviser may contact you
They can discuss your circumstances and explain possible next steps.
TFS Mortgages is a lead-generation service. If you submit an enquiry, your details will be passed to our partner Anderson Reed, whose qualified, FCA-authorised advisers may contact you to discuss your circumstances.
Submitting an enquiry is not a mortgage application, recommendation, eligibility check or guarantee of approval.
Remortgage Enquiry
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