Which Option Saves You More?

When your fixed mortgage rate is coming to an end, you’ll normally choose between two options: a product transfer with your existing lender, or a remortgage with a new lender. Both choices have different benefits, costs, timelines and long-term impacts on your payments.

This guide explains the differences in detail and helps you decide which route is best based on your goals, affordability, equity and credit profile.

What Is a Product Transfer?

A product transfer is when you stay with your current mortgage lender and switch onto a new rate without changing your mortgage balance or moving lender.

Key features:

• Fastest option (often 1–7 days)
• No legal work
• No property valuation needed in most cases
• No affordability assessment required with many lenders
• Avoids Early Repayment Charges (if done at the right time)

Product transfers are usually the simplest option, and often best if speed or convenience matters.

What Is a Remortgage?

A remortgage is when you switch from your current lender to a completely new one — often to get a better rate, borrow more, or change mortgage terms.

Key features:

• Potentially cheaper rates
• Access to a wider choice of lenders
• Opportunity to release equity
• Can adjust your mortgage term
• Slower process (4–8 weeks)
• Full checks required (valuation, underwriting, legal)

If you’re interested in raising funds for improvements, see our guide: Remortgage for Home Improvements.

Key Differences at a Glance

Feature	Product Transfer	Remortgage
Process Time	1–7 days	4–8 weeks
Affordability Check	Not always required	Required
Legal Work	None	Yes
Valuation	Not usually	Yes (AVM or physical)
Best For	Speed & simplicity	Best rate & raising equity

When a Product Transfer Is the Better Choice

A product transfer may be the best option if:

• Your income has decreased since your last mortgage
• Your credit score is lower than before
• You want a new rate quickly
• You don’t need to borrow more
• You want minimal admin or paperwork

Because the lender already knows your history, many checks are skipped — making approval easier.

When a Remortgage Is the Better Choice

A remortgage may suit you better if:

• You want the best possible interest rate
• You want to raise money for home improvements
• Your property value has increased (lower LTV)
• You want to change the mortgage term
• You want to consolidate debt responsibly

For full timelines, see our guide: Remortgage Timeline

Impact of Loan-to-Value (LTV)

Your LTV plays a major role in deciding whether a product transfer or remortgage gives you better value. If your home value has increased, remortgaging could drop you into a lower LTV band with cheaper rates.

For full LTV guidance, see: LTV Explained

Product Transfer vs Remortgage Costs

Product Transfer Costs:

• Usually no fees
• No legal costs
• No valuation costs

Remortgage Costs:

• Potential valuation fees
• Legal fees (sometimes free on selected products)
• Possible arrangement fees

However, the long-term savings from a better rate often outweigh these short-term costs.

What If I Want to Borrow More?

If you need funds for upgrades such as extensions, renovations, or internal improvements, a remortgage is usually the required route.

See: Remortgage for Home Improvements

How to Decide Which Option Is Best

Ask yourself:

• Do I want speed or the best deal?
• Has my income or credit score changed?
• Do I want to borrow more?
• Has my property value increased?
• What LTV band will I fall into?

Next Steps

If your fixed rate is ending soon or you want to compare both options, we can connect you with FCA-regulated advisers who can assess affordability, your current LTV, and which route saves you the most over the long term.

You can explore related guides such as Remortgage Timeline or our mortgage calculators to estimate new payments.

All mortgage advice is provided by FCA-regulated advisers. Your home may be repossessed if you do not keep up repayments on your mortgage.

FAQs

Is a product transfer easier than a remortgage?

Yes — it’s usually much faster with far less paperwork.

Can I borrow more on a product transfer?

Not usually. Additional borrowing normally requires a remortgage or a further advance.

Does a remortgage always have legal work?

Yes — but many lenders offer free legal packages.

Which option saves more money?

Remortgaging often provides lower rates, but not always — depends on your profile and LTV.

How early can I lock in a new rate?

Up to 6 months before your deal ends with some lenders.