If your mortgage deal is coming to an end, your lender may already have contacted you with a new rate. It often looks simple. You log in, click a few buttons, and switch to the next deal. However, before you do that, it is important to ask whether that offer is truly the right one for you.
Switching mortgages, whether through a product transfer with your existing lender or by remortgaging with a new one, can have a significant impact on your long-term finances. The decision should never be based on convenience alone. This is where taking professional mortgage advice can make a real difference.
What is a Mortgage Product Transfer?
A mortgage product transfer means staying with your current lender but moving to a new deal once your existing rate comes to an end. It is usually a straightforward process. You are not changing lender, so there is very little paperwork, no solicitor is needed, and often no new valuation is required1.
Some lenders also reward loyalty with slightly better rates for existing customers. For borrowers who want a quick and simple transition, this can appear attractive. However, while a product transfer may be easy, it might not be the most cost-effective option. By remaining with your current lender, you only have access to their range of products. There may be more competitive offers available elsewhere in the market that could reduce your monthly payments or offer greater flexibility1.
What is Remortgaging?
Remortgaging means replacing your current mortgage with one from a different lender. It is a little more involved, as it includes a new application, a property valuation, and legal work1.
For many homeowners, the extra effort is worthwhile. If your property value has increased or your personal circumstances have changed, remortgaging could unlock a lower interest rate or a deal that better suits your needs.
Remortgaging can also provide opportunities to:
- Borrow additional funds for home improvements or debt consolidation, subject to affordability checks.
- Adjust your mortgage term to shorten or lengthen repayments.
- Change from one repayment type to another or select a mortgage with greater flexibility.
The remortgage market is highly competitive, and reviewing your options could lead to meaningful savings over the lifetime of your mortgage1.
Why Professional Advice Matters
Choosing between a product transfer and remortgaging is not simply about finding the lowest interest rate. It requires an understanding of how each option affects your personal situation.
An adviser can help you compare the total cost of both routes, including fees, early repayment charges, and product features. For example, a product with a lower rate might include high arrangement fees, which could make it more expensive in the long run.
An adviser can also check whether your current loan-to-value ratio means you qualify for a better rate elsewhere and assess how your financial goals, such as overpaying or borrowing for home improvements, fit into your overall mortgage strategy.
Mortgage advisers have access to a wide range of lenders and products that are not always available directly to consumers. They are also regulated to ensure that the advice you receive is suitable for your circumstances and that you fully understand your options.
Taking advice can give you peace of mind, knowing that your decision has been made on the basis of a complete view of the market rather than a single lender’s offer.
What You Should Do Next
If your mortgage deal is due to finish within the next six months, now is the ideal time to start reviewing your options. Your adviser can assess whether your current lender’s product transfer offer is competitive or whether remortgaging elsewhere would provide greater benefit.
By acting early, you can avoid being moved onto your lender’s standard variable rate, which is often higher, and ensure you have the most appropriate mortgage in place before your existing deal ends.
A short discussion with an adviser now could save you time, money, and uncertainty later.
Source:
- Newcastle Building Society (2025). Available at: https://newcastle.co.uk/mortgages/remortgaging/mortgage-product-transfer-vs-remortgaging [Accessed 28 Oct. 2025].
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All the information in this article is correct as of the publish date 30th October 2025. The opinions expressed in this publication are those of the authors. The information provided in this article, including text, graphics and images does not, and is not intended to, substitute advice; instead, all information, content, and materials available in this article are for general informational purposes only. Information in this article may not constitute the most up-to-date legal or other information.
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