When it comes to renewing your mortgage deal, you’ve got two main options: stick with your current lender for a product transfer or explore the wider market with a remortgage.
Both have their benefits, but if you’re not careful, you might miss out on a better deal.
Let’s break it down in simple terms so you can make the best choice for your situation — and why Clever Mortgages is your best bet for unbiased advice!
What Exactly is a Product Transfer?
Imagine your current mortgage deal is about to end. Instead of looking for a new lender, your existing lender offers you a new rate to stay with them. That’s a product transfer. It’s often quick, doesn’t usually require a property valuation, and there’s minimal paperwork involved.
Sounds easy, right? It is! But here’s the catch: your lender will only offer you, their products. They’re not going to tell you if someone else has a better deal. Also, if rates reduce before your new rates kicks in they wont offer that new rate, whereas Clever will monitor rates up until the time your new rate is due to kick in.
How is a Product Transfer Different from a Remortgage?
A remortgage is when you switch to a new deal — either with your current lender or a different one. If you stick with your existing lender, it’s technically a product transfer. If you go elsewhere, it’s a remortgage.
With a remortgage, you’ve got the whole market to explore. Sure, it might take a bit more time and involve a property valuation or credit check, but it can save you a lot of money in the long run. Why settle for what’s easiest when you could get a better rate?
Pros and Cons of Product Transfers vs. Remortgages
Let’s look at the pros and cons to help you decide.
Product Transfer Pros:
- Less hassle – fewer forms, quicker process.
- No legal fees in most cases.
- No valuation required if you’re not borrowing more.
Product Transfer Cons:
- Limited to one lender’s products.
- No independent advice from your lender.
- Could miss out on better deals elsewhere.
Remortgage Pros:
- Access to the whole market means more chances of a better deal.
- Brokers can find exclusive rates you won’t get direct.
- You can borrow more or change your terms if needed.
Remortgage Cons:
- Can take longer than a product transfer.
- May involve a valuation or additional paperwork.
Can You Borrow More with a Product Transfer?
Yes, but it’s a bit more involved. Your lender will want to check your income, outgoings, and credit history to make sure you can afford the extra amount. If all checks out, you might be able to release some equity — maybe for home improvements or debt consolidation.
But here’s where it gets tricky: your current lender’s additional borrowing rates might not be the best out there. That’s why it’s worth speaking to a broker to see if another lender can offer a better deal.
Why Clever Mortgages?
We get it — mortgages can be confusing, and it’s tempting to take the quick and easy route. But at Clever Mortgages, we’re here to make sure you take to the right option.
Here’s what we do for you:
- Whole-of-market access: We’re not tied to any one lender, so we can find you the best deal.
- Honest advice: If your current lender’s product transfer is the best option, we’ll tell you!
- Time-saving: We handle the legwork, so you don’t have to.
- Tailored solutions: We know everyone’s circumstances are different, so we’ll find a deal that works for you.
Real Talk: Why You Shouldn’t Go It Alone
Your lender wants to keep your business — that’s why they offer product transfers. But they’re not going to tell you about better deals out there. That’s where we come in. We’ll compare your lender’s offer with the entire market and make sure you’re getting the best rate possible.
Think of us as your mortgage wingman. We’ve got your back, whether you decide to stick or switch.
Final Thoughts
Product transfers can be a quick and easy option, but they’re not always the best financial move. Before you commit, have a chat with us at Clever Mortgages. We’ll make sure you’re not missing out on a better deal elsewhere.
After all, your home is one of your biggest investments. Let’s make sure your mortgage works as hard as you do!
