Mortgage Product Transfer vs Remortgaging

Switching mortgages, whether that's through a mortgage product transfer or remortgaging, has become a popular practise. This flexibility can often give people more freedom with what can be their biggest financial commitment - their home mortgage.

There are several reasons why people choose to switch mortgages, from debt consolidation to finding better interest rates and more. If you’re considering changing your mortgage, but aren’t sure if a mortgage product transfer or remortgaging is best for you, our guide is here to help.

What is a mortgage product transfer?

With a mortgage product transfer you’re able to change your current mortgage product to a new one with the same lender. You may choose to do this when your current mortgage deal is coming to an end or if you’re looking to lend more money using your house as security.

Some people do this if they’re looking to extend or refurbish their house. You may also wish to move from a Standard Variable Rate mortgage to Fixed Rate, Tracker or Discounted Rate mortgage if interest rates have increased.

When transferring your mortgage product, you can look to take out more than your current mortgage balance or original loan. If this is the case, your lender will need to ensure the additional lending is affordable for you, and may take into consideration several eligibility factors before guaranteeing to lend you more money. These include but are not limited to:

  • Employment status
  • Income & expenditures
  • Age
  • The amount of equity you have in your home

Benefits of a Mortgage Product Transfer

Both a mortgage product transfer and remortgaging offer their own advantages and disadvantages. However, in comparison to remortgaging, a mortgage product transfer usually means there is:

  • Less paperwork than a remortgage
  • Few to no fees
  • No need for a new property valuation
  • No legal work so no solicitor costs

In addition, some lenders including Newcastle Building Society acknowledge loyalty of existing customers and offer preferential rates to those looking to transfer to a new mortgage product.

What is a remortgage?

Remortgaging means paying off your existing mortgage by taking out a new one with a different lender, using your home as security for the loan. Like mortgage product transfers, you can do this to replace your current mortgage and/or to take out more money against your property.

You can borrow the same amount as your existing mortgage or borrow an additional amount. Again, this may be useful if you are looking to improve or extend your home. If you are borrowing a significant amount, your lender may require evidence that you have or will use the money for the purpose you described.

Benefits of Remortgaging

Remortgaging is a big financial investment, so it’s important to spend time deciding if it’s the right option for you. Some of the benefits of choosing to remortgage include:

  • Lower interest rates if your home’s value has improved
  • Finding a more flexible mortgage
  • Having the facility to borrow more money
  • Extending or reducing the term of your loan or the repayment type of your loan
  • Not being limited to your existing lender’s mortgage products

Which is right for me?

Although there are a lot of similarities between a mortgage product transfer and remortgaging, there are important differences between the two to consider before deciding which option is best for you.

If you are time sensitive, a mortgage product transfer may be more suitable as there is less paperwork and, since you aren’t changing lenders, the overall process is usually quicker.

Remortgaging may come with a lot of the fees that a standard new mortgage comes with (property valuation, solicitor fees, conveyancer fees etc.). These additional costs may not suit you or they may be more than you actually save and therefore remortgaging may not be the right decision for you.

If your current provider is unable to offer the mortgage you want, remortgaging and switching lenders may be the better option for you.


We hope you found this useful. If you’d like to speak to us or have any more questions you’d like answered, call one of our mortgage advisors for advice about your mortgage.

Your mortgage will be secured on your home. Your home may be repossessed if you do not keep up repayments on your mortgage.

Thinking about remortgaging?

You can speak to one of our friendly mortgage advisers by calling


9am - 5pm Monday to Friday (Calls to 03 numbers, cost the same as a call to a standard ‘01’ or ‘02’ landline number, even when calling from a mobile.)