These are normally available or offered up to 3 months in advance of when your current product is about to end. By taking a product transfer this would normally fix you into a new rate, normally a 2, 3 or 5-year term but it is best to ask your adviser what is best for you after discussing your preferences.
Below we have put together some common questions regarding product transfers and whether they are right for you? We would always recommend that you talk to us free of charge to discuss your options and we will show you the difference between a re-mortgage or a product transfer. If the Product Transfer is right for you we will show you why and if there is a better alternative we will show you the options and costs. We generally find that the product transfer is the simplest route and ultimately the best option for most of our clients.
What are Product Transfers?
Product transfers are deals that are available from your current lender. When your fixed rate is about to end it is becoming increasingly important for lenders to try and keep their market share by offering a new deal for their existing clients.
Should I accept a Product Transfer from my current lender?
Most clients find the process simple and want the reassurance of a new deal and a better rate than the standard variable rate. Should you accept the deal? At Prosper Home Loans we offer a free service to review the deals that are being offered to you! We will compare the fees the lender wants to charge you and discuss options! We will ask you about your future intentions as this is really important as you would not want to tie yourselves into another deal if you are planning on selling or if wanted to raise funds from your property for debt consolidation or home improvements.
Is a Product Transfer best for me?
At Prosper Home Loans we will offer a free consultation and from this we will be able to advise on whether a Product Transfer or a Re-Mortgage is best for you. We will help complete the Product Transfer on your behalf or offer a new re-mortgage the choice is yours.
Product Transfer versus a new re-mortgage
We will assess the deal on offer and compare it to a like for like re-mortgage which will normally have a free valuation and free legal fees in transferring your mortgage. From this you can decide what is your best option. You may feel that a PT is better for you as you are currently with the lender and there are normally no further underwriting to receive a new deal. However, it is still best to run it pass your Prosper Home Loans mortgage adviser.
What do Prosper Home Loans offer when arranging a Product Transfer?
We offer independent and impartial advice to make sure that your new product transfer deal is right for you. If it isn’t we will show you why and the best options for you. Ultimately you are the client and the choice are yours but it is important to have a second opinion so you can rest assured that you have made the right decision with your new product transfer.
What lenders offer Product Transfers?
Most lenders are starting to offer product transfers. We are registered with all the lenders and have access to the new rates offered on product transfers and exclusive products with have access to. Some of our product transfer partners are
- Barclays
- Halifax
- Nationwide
- BM Solutions also known as Birmingham Midshires
- The Mortgage Works
- NatWest
- The Coventry Building Society
- Santander
- Woolwich
- Virgin Money
- Godiva
Other reasons why you might choose a Product Transfer over a Re-Mortgage?
PT’s are a quicker process with less paperwork where a re-mortgage is a new application which will be underwritten by the new lender. This is why some clients prefer a Product Transfer.
The survey/valuation tends to be a house price index which can suit many clients but if you have completed a reasonable amount of home improvements this may not be recognised by a desk top valuation and this can be frustrating as you are not getting the best deal that truly shows your equity in the property you own. This is when a re-mortgage may be best for you.
Your current lender already has your mortgage. Therefore, as long as you are not in arrears they want to keep you as a client and they offer competitive deals. They will not be asking for your current income or take into account your current affordability. There will be no legal work and changes to the title. A really easy option and could be the best option for you.
