Product Transfer

Product Transfer means switching your mortgage to another deal with the same lender.

When taking out a new mortgage the lenders often offer special deals on the existing rate which are in a place for a specific period of time, typically two to five years. After this period the rate typically switches to the current variable rate which can prove to be much higher than what had been in place until that point in time.

At that point, many individuals consider a remortgage. This means moving your existing mortgage to a new lender. Often borrowers choose to remortgage in order to take advantage of the new lower rates on offer, thereby paying less on a monthly basis.

This is not a must. In fact, sometimes it is better to stay with the existing lender for a number of reasons:

• It is often quicker than remortgaging;
• There is no need for a solicitor or conveyancer;
• In some cases, you may be able to secure a new rate before your existing deal ends;
• Less paperwork and hassle.

Sometimes remortgaging is not even an option, for example, changes in life's circumstances such as unemployment, and a product transfer may be the only option available.

If you are looking at switching mortgage, look at the overall repayment period too. Your monthly cost may be less, but don't forget to check the final repayment date of your mortgage as it may be longer than your current deal.

We at Windom Finance will look at your personal demands and needs and help you find what best fits your circumstances. Whether a product transfer or a remortgage, we will look to find the most appropriate solutions. Remember that there are many possible pitfalls and small print when making any changes to your existing mortgage and therefore it is always a good idea to get professional guidance from one of our brokers.

A mortgage is a loan secured against your home. Your home may be repossessed if you do not keep up repayments on your mortgage or any other debt secured on it.

You may have to pay an early repayment charge to your existing lender if you remortgage.