A product transfer lets you move to a new mortgage rate with your existing lender without a full remortgage application. For contractors with a specialist lender, this is often the quickest option when your initial deal expires. Since product transfers typically don't require a new affordability assessment, your contractor income won't need to be reverified a major advantage if you're between contracts or have recently changed your income structure.
The main risk of a product transfer is accepting a rate that is not the best available. Your existing lender has no incentive to offer you the most competitive rate in the market — they offer you a rate within their product range.
We always check the full market before recommending a product transfer, so you make the decision with complete information. In some cases, the product transfer rate is genuinely the best available. In others, a full remortgage produces a saving of hundreds of pounds per month.
Product transfers can be arranged directly with your existing lender or through a broker. Using a broker has the advantage of independent advice — we compare your lender’s product transfer options against the full market and advise on whether a remortgage would be better.
The process is simple: select the new rate and product from your lender’s product transfer range, confirm you wish to proceed, and the new product takes effect from the start date. There are no solicitor fees, no valuation and no income documentation required
A product transfer can be an excellent option for contractors who want a simple and hassle-free way to secure a new mortgage deal without changing lender.Contractors can access many of the same first time buyer schemes as employed applicants. Here are some of the most popular options available.
A product transfer stays with your existing lender and typically requires minimal documentation. A remortgage moves to a new lender and requires a full application including income verification. The product transfer is quicker and simpler; the remortgage searches a wider market and is more likely to produce the best rate.
For contractors, the income verification aspect is particularly relevant. A contractor between contracts may prefer a product transfer; a contractor on a higher day rate than when they originally applied may benefit from the full market search a remortgage provides.
Most lenders allow you to lock in a product transfer rate up to three to six months before your current deal expires.
We recommend reviewing your options at least four months before your deal expires, giving you a clear runway before your current rate ends.
Why It Matters: That window gives you enough time to properly compare the market and complete any necessary process without feeling rushed.
Generally no — product transfers with your existing lender typically do not require a new affordability assessment or income documentation. This is one of the main advantages for contractors who prefer to avoid the documentation process.
Most product transfers are for the existing balance only — they do not allow you to increase your borrowing. If you want to borrow more, a further advance or a full remortgage is required.
No — a product transfer stays with your existing lender and is simply a rate switch. A remortgage moves to a new lender and involves a full application process.
Product transfers typically involve no legal costs, no valuation fees and no arrangement fees on the simpler products. Some lenders charge a product fee on certain fixed rate products. Our broker fee only applies to full remortgages, not to product transfers.
If your fixed rate expires before you have arranged a new product, your mortgage reverts to the lender's standard variable rate. You can still arrange a product transfer at any time, and the new rate will take effect immediately.