What is a product transfer?

A product transfer is when you switch to a new mortgage deal with your existing lender rather than moving to a new one. Your loan stays where it is; only the interest-rate product changes.

How it works

As your current deal nears its end, your lender will usually offer you a menu of new products — for example, a new two- or five-year fixed rate. You choose one, and it takes over when your current deal finishes. There's typically no new valuation and far less paperwork than a full remortgage.

The upsides

• Quick and simple, often completed online in minutes.
• Usually no legal work, valuation or affordability re-check.
• Little chance of slipping onto the standard variable rate by accident.

The trade-offs

• You only see your current lender's deals, which may not be the cheapest available.
• You can't increase your borrowing through a simple transfer.
• It can be tempting to accept out of convenience without comparing the wider market.

When it makes sense

A product transfer is worth serious consideration when your lender's new rate is competitive, your circumstances have changed in ways that might make a remortgage harder, or you simply value speed and simplicity. The smart move is to compare your lender's offer against the cheapest matching deals elsewhere before deciding — and to set an alert so you know when a better rate appears.

This is general information, not mortgage advice. Always confirm the details with your lender.