Product Switch / Transfer

A product switch mortgage is essentially a remortgage with your existing mortgage lender. It involves switching your existing mortgage to a new mortgage to obtain lower interest rates and revised terms.

A remortgage is when you switch to a new mortgage and can include lenders other than your current lender, whereas a product switch mortgage is only available with your existing lender. When you approach the end of your fixed rate term in your mortgage, your lender may reach out to offer a product transfer, or you can ask them what options are available to you. If you do not switch products or remortgage at the end of the fixed rate term, you will be placed onto the Standard Variable Rate (SVR). These interest rates are often much higher than the rates on your fixed term, and so you will see your monthly payments increase, sometimes by quite a lot.

Porting is term that refers to moving your existing mortgage to a new property. This is often done when you are moving to a new home but are still in the fixed-rate term of your mortgage. This is different to a product switch/transfer.

Product switches can often be very quick to complete, particularly if the amount you are borrowing remains the same. This is because your current lender already has information on you and the value of your property, reducing the need for valuations or collection of paperwork. Switching to another lender can take longer, but it is always worth checking what deals are out there and comparing them with the offers available from your current lender.

Benefits of a product switch mortgage

  • Less work involved than when remortgaging with a new lender.
  • Less paperwork to complete.
  • A full valuation of your property is likely not required.
  • The interest rates on a new mortgage will most likely be cheaper than the variable rate on your current mortgage. Sticking to your current mortgage will therefore lead to higher monthly payments.
  • Quicker to arrange than a remortgage.
  • Avoids legal fees and credit searches.

Disadvantages of a product switch mortgage

  • There may be better deals available from other lenders.
  • If your circumstances have changed, such as your employment status or income, you may not be approved for a new product with your current lender.
  • Your lender is not impartial when providing advice on your remortgage.

It is always recommended that you see what other deals are out there when looking at a product switch with your current lender or a remortgage elsewhere. Using a mortgage broker is recommended as they can search a comprehensive range and let you know if better deals are available. If your current lender is offering the best deal, your broker will be able to tell you this. A mortgage broker can give you impartial advice, which your current lender will not do as they want you to take out a product with them and not a competitor.

At Your Space Mortgages Bristol, we can help you with your product transfer/switch. The benefits of working with us include:

  • We will recommend the right product with your existing lender based on your needs
  • We can complete the entire switching process for you
  • We will not charge any broker fees for product transfers/switches
  • Pre-agreed with no underwriting (if you don’t change the term of your mortgage)
  • Automated valuation or use existing valuation
  • No legal costs
  • Quick way to secure a new deal on your mortgage
  • You can fix your mortgage product up to four months before your existing deal finished
  • If your income has reduced, you can still move to a new mortgage product

The number of products available on the market is vast, and it can be complicated and overwhelming to find out the product that is best for you and your needs. At Your Space Mortgages Bristol, we use our expertise and knowledge of the market to give you the best advice, to make sure you have a product that suits you.