The term mortgage product transfers mean that you can transfer your current mortgage to a new one before or after your current mortgage deal ends. At NeedingAdvice.co.uk Ltd, we receive various enquiries from customers who are interested in product transfer with thege product transfers in the UK.
Read about what credit score mortgage is required for a mortgage on our blog.
What is a product transfer mortgage?
Product transfers are a way to switch lenders without having to go through another application process. This means you can get a better rate or lower monthly payments by switching lenders. However, this method isn’t always an easy solution. You’ll need to do some research before you take the plunge. There’s also no guarantee that you will be accepted for the new lender. It may not even be possible to transfer if you’re already under a fixed-rate agreement. Sometimes, it is also known as a rate switch which is a process of switching to a better rate with your existing mortgage lender.
Usually a product transfer will be seamless and the new interest rate will start on the same day the old rate expires. With some lenders if the new rate is cheaper than the old rate then they allow the new rate to start 1, 2 or even 3 months early.
Some lenders offer cheaper rates for product transfers through a broker than they do going direct. Also in some cases lenders might only offer product transfer via brokers only and will not offer product transfers directly via their own call centres or branches.
There are some lenders who are not good at communicating about the competitive rates that they have reserved especially for existing customers, so in this case, an expert mortgage broker could help you with your product transfer.
What is the mortgage product transfer procedure?
The mortgage transfer is a straightforward process but you still need a mortgage broker to help you with your application. The product transfers could be quickly arranged over the phone or in the branch but the applicant could be subjected to an affordability check in which they will ask you to fill out an income and expenditure form. It is also important to note here that, some high street lenders will reject the product transfer application for standard products.
Difference between mortgage porting and mortgage product transfer
Porting a mortgage is defined as transferring your current mortgage deal to a new property. Mortgage product transfer, on the other hand, is defined as transferring your mortgage to a new deal with your current lender.
Mortgage porting typically incurs an administration fee, whereas mortgage product transfers do not. Mortgage product transfers may also offer you a discounted rate on your mortgage deal.
It’s important to note that mortgage porting is not available on all mortgages and that you may be required to provide updated financial information in order to qualify. Mortgage product transfers, on the other hand, do not require a credit checkA check of a borrower's credit history, which is used by mor....
Mortgage porting is a good option if you’re looking to move home but don’t want to go through the hassle of finding a new mortgage deal. Mortgage product transfers, on the other hand, are a good option if you’re on a high-interest rate mortgage or if you’re coming to the end of your current mortgage deal. Talk to your mortgage broker to see which option is best for you.
Mortgage product transfer rates and fees
Every lender has a different fee structure for product transfers. Standard product transfers are generally hassle-free as compared to a new mortgage application or remortgageRefinancing an existing mortgage with a new mortgage.. One of the main reasons people choose to use alternative products instead of transferring their loans is the rates they’re currently paying with their current lenders.
To get more details on rate switch/product transfers in the UK, you can find the below links-
Product Transfer with Bad Credit
A bad credit score can always create issues with any type of product transfer. Lenders always check your affordability when your start a product transfer application. So, it is always better to check your credit score before visiting your current mortgage lender for product transfer. We suggest you get copies of your credit file. It is best to check dates and details of any defaultsMissed payments on credit accounts, which can affect a borro..., CCJs, missed payments. This can be done by following the link below:
Sign up for 30 days free access to credit file
FAQs- Mortgage product Transfers
What is a product transfer mortgage?
A product transfer mortgage is the bank loan when you move from your existing mortgage deal to a new one with your current mortgage lender. It is a good alternative to remortgaging, depending on different circumstances.
How does product transfer work?
The process happens when the existing fixed rate is within a few months away. We select a new fixed rate and then when the old fixed rate expires the new fixed rate starts. Unlike a remortgage where the old mortgage is paid off with the new lender and the legal process is required. With a product transfer no legal work is required so the process is less complicated.
What is the difference?
With a product transfer the existing fixed rate is replaced with another new fixed rate or another discounted variable deal. The rate is switched either on the day the old rate expires or some lenders allow the rate to change a month or two earlier.
Mortgage porting is the process of taking the existing fixed rate or discounted mortgage and moving it from one property another one. This usually happens when a client sells one property and buys another one. If they have early repayment charges then porting the mortgage will allow the mortgage to be moved from one property to another one without incurring any early repayment charges.
Which option is better?
This depends on what you want to achieve. If you’re happy where you are now, then staying put would probably be the best choice. However, if you’re looking to save some money and get a cheaper rate, then moving to a new mortgage deal may be more suitable.