Remortgage or Product Transfer: Your Options When a Deal Ends

When an introductory mortgage deal ends, doing nothing usually costs more. The choice is between staying with your lender or moving.

Most mortgage deals, such as a two- or five-year fix, are introductory. When the deal ends, your mortgage usually moves onto the lender’s standard variable rate unless you choose something else. Planning ahead gives you time to compare options.

What happens if you do nothing

You’ll usually move to the lender’s standard variable rate (SVR). It’s often higher than the deals available to new and existing customers, and the lender can change it at any time. On the plus side, there are rarely early repayment charges on an SVR, so you can usually switch whenever you choose.

Option one: a product transfer

A product transfer is a new deal with your existing lender.

• Fewer checks: if you aren’t borrowing more and your payments are up to date, FCA rules let lenders switch you without a full affordability assessment.
• Little paperwork: no new solicitor is needed and there’s usually no valuation.
• Speed: many transfers can be completed online in days.

The trade-off is choice. You’re limited to the deals your current lender offers.

Option two: remortgaging

Remortgaging moves your loan to a new lender. You’ll go through a full application, including affordability and credit checks and a valuation. The benefit is access to the whole market, and possibly a better rate or the chance to borrow more.

	Product transfer	Remortgage
Lender	Same lender	New lender
Affordability check	Often not needed if not borrowing more	Full assessment
Legal work	Usually none	Needed, often free with the deal
Choice of deals	Your lender’s range	Whole market
Typical time	Days	Several weeks

Timing your switch

Check when your current deal ends and whether early repayment charges apply before then. Many lenders let you lock in a new rate some months ahead, and you can often switch to a better deal before completion if rates fall. Start looking at least three months before your deal ends.

Borrowing more

If you need extra money, for home improvements for example, you could ask your lender for a further advance or remortgage for a larger amount. Borrowing more increases your debt and the interest you pay, and spreading short-term spending over a long mortgage term can cost far more overall.

Making the choice

If your lender’s offer is competitive, a product transfer is simple and quick. If you can find a clearly better deal elsewhere, want to borrow more or your circumstances have changed, remortgaging may be worth the extra steps. Our guides to mortgage rate types and loan-to-value help you weigh the offers.

Your questions

How early can I arrange a new deal?

Many lenders let you secure a product transfer or remortgage several months ahead, often up to six months. The exact window depends on the lender.

Will a product transfer affect my credit file?

Many product transfers don’t involve a hard credit search, but some do. Ask your lender before you proceed.

Do I need a solicitor to remortgage?

Yes, legal work is needed to move the mortgage to a new lender. Many remortgage deals include free standard legal work.

This guide explains how UK borrowing works in general terms and isn’t financial advice. Rates, rules and lender criteria change, so check the details with the lender, GOV.UK or the Financial Conduct Authority before you decide. For advice on your own circumstances, speak to an FCA-authorised mortgage or financial adviser. If you borrow against your home, it may be repossessed if you do not keep up repayments.