REMORTGAGES & PRODUCT TRANSFERS

A remortgage involves replacing your existing mortgage with a new mortgage, usually with a different lender, while remaining in your current property.

There are several reasons why homeowners may consider remortgaging, including:

• Reviewing your interest rate: Your existing mortgage deal may be coming to an end, and you may wish to consider alternative products and interest rates.

• Changing mortgage arrangements: You may want to review your mortgage term, repayment type or other features of your existing mortgage.

• Borrowing additional funds: Subject to affordability and lender criteria, you may be able to release equity from your property for purposes such as home improvements.

• Changes in personal circumstances: Your income, household circumstances or financial commitments may have changed since arranging your original mortgage.

Remortgaging normally involves a new mortgage application, with the lender assessing your income, affordability, credit history and property.

There may also be costs involved, including product fees, legal fees, valuation charges or early repayment charges on your existing mortgage.

Alternatively, you may be able to switch to a new mortgage product with your current lender through a product transfer, which can involve a different process and fewer requirements.

We can review your existing mortgage arrangements and discuss the options available, including whether remortgaging or remaining with your current lender may be appropriate for your circumstances.

A mortgage product transfer involves switching to a new mortgage deal with your existing lender, rather than moving your mortgage to another provider.

This is commonly considered when an existing fixed-rate or other introductory mortgage deal is approaching its end date.

How Does a Product Transfer Work?

Your existing lender may offer a range of mortgage products, allowing you to select a new interest rate and deal period while keeping your mortgage with the same provider.

Where you're simply changing your mortgage product without increasing your borrowing or making significant changes to your mortgage arrangements, the process can often be more straightforward than remortgaging to another lender.

Depending on the lender and your circumstances, a new affordability assessment, property valuation or legal work may not be required.

What Are the Potential Benefits?

• Remaining with your existing mortgage lender.

• A potentially simpler application process.

• Normally no additional conveyancing work for a straightforward product transfer.

• The ability to arrange a new mortgage product before your current deal expires, subject to the lender's timescales.

Should I Consider Remortgaging Instead?

Although a product transfer may be convenient, your existing lender may not necessarily offer the most appropriate mortgage option for your circumstances.

Remortgaging to another lender may provide access to different interest rates, fees or mortgage features.

We can review the product transfer options available from your existing lender alongside relevant remortgage alternatives, considering the overall costs and your individual requirements.

Our aim is to help you understand the available options before deciding whether to remain with your current lender or switch to another provider.

If you have an existing mortgage, it's worth reviewing your arrangements regularly, particularly when your current interest rate deal is approaching its end date.

Approaching the End of Your Mortgage Deal

Many mortgage lenders allow borrowers to secure a new mortgage product several months before their existing deal ends, although the timescales and conditions vary between lenders.

Reviewing your mortgage approximately six months before your current deal expires can provide time to consider the options available and arrange your next mortgage product.

If no new arrangement is made, your mortgage may move onto your lender's Standard Variable Rate (SVR) or another applicable follow-on rate, which could result in a change to your monthly repayments.

Changes in Your Circumstances

You may also wish to review your mortgage if your financial circumstances have changed, you're considering additional borrowing, or you want to explore changing your mortgage term or repayment arrangements.

Reviewing Your Mortgage Before Your Deal Ends

You don't necessarily have to wait until your existing deal expires to review your options.

However, if you're considering changing your mortgage during a fixed or other introductory rate period, an Early Repayment Charge (ERC) may apply. This should be considered alongside any potential benefits and the overall costs of changing your mortgage.

Considering Your Options

Depending on your circumstances, you may be able to arrange a product transfer with

The time required to arrange a new mortgage deal will depend on whether you're switching products with your existing lender or remortgaging to another lender.

Mortgage Product Transfers

If you're remaining with your current lender, a mortgage product transfer can often be arranged relatively quickly, particularly where no additional borrowing or significant changes to the mortgage are required.

Some lenders allow a new product to be selected several months before the existing deal expires, with the new rate taking effect on an agreed date.

Remortgaging to Another Lender

A remortgage involving a new lender will generally take longer, as it normally requires a new mortgage application, affordability assessment, property valuation and legal work.

A straightforward remortgage may take approximately four to eight weeks, although this is only a general guide. Some applications may complete sooner, while others can take longer depending on the lender, legal requirements and individual circumstances.

When Should I Start?

We generally recommend reviewing your mortgage arrangements around six months before your existing deal expires. This allows time to consider the options available and plan for the end of your current mortgage product.

How We Can Help

We can review your existing mortgage arrangements, explain the available options and assist with the application or product transfer process, keeping you informed as your new arrangements progress.