A guide to mortgage product transfers
Most of the banks and building societies provide their existing mortgage customers with the option to switch mortgage rates either through online portals or over the phone.
According to UK Finance, 1,195,200 homeowners switched mortgage products with their existing provider during 2019 representing £167.4 billion of borrowing. There are also a reported 274,000 mortgages up for renewal over the next three months.
Aaron Strutt, product director at Trinity Financial, says: “The lenders have different policies with their product transfer rates so some borrowers can switch or book new rates much earlier than others. A huge amount of product transfers are arranged via mortgage brokers for their clients.
"Our brokers constantly arrange product transfers for borrowers who are better off sticking with their lender but also remortgage many of them to other lenders to get better deals and raise additional funds."
This table shows how different the lender's policies are and when product transfers can be applied for.
| Mortgage lender | When can existing customers or brokers apply to switch rates? |
| Accord Mortgages | 90 days before rate finishes |
| Bank of Ireland | Three months before rate finishes |
| Barclays for Intermediaries | Three months before rate finishes |
| Birmingham Midshires | 60 days before rate finishes |
| Clydesdale Bank | Apply 180 days before the end of term and complete 90 days before |
| Halifax for Intermediaries | Three months before rate finishes |
| HSBC | 90 days before the rate finishes |
| Metro Bank | Three months before the rate finishes |
| NatWest | 110 days prior to the rate finishing |
| Nationwide Building Society | Five months before the rate finishes |
| Santander | Four months before the rate finishes |
| The Mortgage Works | Six weeks prior to the rate finishes |
| Virgin Money | 120 days prior to the rate finishes |
Call Trinity Financial on 020 7016 0790 to secure a product transfer or complete our online form.
A product transfer is a term used by the mortgage lenders for the rate switch products they provide to their existing mortgage customers. They are normally different from new customer rates and have different arrangement fees.
These products were designed to make it quick and easy for the existing mortgage borrowers to take a new mortgage and avoid expensive standard variable rates.
If borrowers opt for a non-advised process they will not typically need to prove their income again to secure the new mortgage although they will not able to borrow more money or make any other major changes to the mortgage.
Some lenders may ask applicants to confirm their financial situation has not changed.
Many of the lenders are offering their cheapest ever mortgage rates and they are particularly keen to attract customers from their rival lenders.
It makes sense for borrowers to find out what rate the lender is offering them to stay and then compare the product with the rest of the market. If the rate is more expensive it may well be worth switching providers.
Trinity Financial has access to fantastically priced fixed and tracker rates through lenders providing free property valuations and legal services to minimise the costs of remortgaging.
Sometimes the lenders have cheaper product transfer rates available via brokers so it is worth checking to see if an intermediary can get you a better deal. Trinity Financial's brokers will be happy to check and research the market.
Trinity Financial's brokers can submit product transfers for borrowers providing they complete our basic fact find and provide one form of identification.
Before we submit your application we assess to market to find out if there is a better deal available.
Many of the mortgage lenders do not always offer their existing customers the cheapest rates on the market so it is important to check you are getting the best deal.
If you have a larger mortgage loan or you are taking a longer-term fixed-rate it is important to secure the most competitively priced mortgage.
Trinity Financial regularly has access to cheaper rates than borrowers applying directly particularly through lenders like Halifax and NatWest.
If you are planning to sell your property it may not make sense to take a fixed-rate because the product is likely to have high early repayment charges.
The vast majority of mortgage lenders will let you port your mortgage to another property but you will have to go through the full application process again. This includes providing payslips and the lender will have to approve of the new property you want to buy.
The most sensible option for many borrowers planning to move is to switch to a product without early repayment charges and low setup costs. These products provide maximum flexibility and enable borrowers to sell their homes without being subjected to large exit fees.
Not all of the high street or specialist lenders offer tracker rate or offset mortgages. If they do they are not always available to their existing customers.
If you are looking for a mortgage without early repayment charges or an offset mortgage, Trinity Financial's brokers have access to a range of lenders offering flexible fixed and tracker rates without exit fees.
If you are planning to borrow more money when your fixed or tracker rate finishes, you will need to apply for the additional funds and your affordability will be checked again.
The mortgage lenders use different mortgage affordability calculations so your existing mortgage lender may not offer you the most generous mortgage.
It is possible to borrow money when you remortgage for a whole range of reasons including debt consolidation, property improvements, buying investment properties, and gifting deposits to family members.
Trinity Financial's brokers regularly speak to borrowers who have taken product transfer rates even though the fixed or tracker rate is not suitable for their circumstances.
Not all borrowers need financial advice when it comes to choosing a new rate, but for those that are not sure which deal to take it may well be worth getting advice. Trinity Financial's brokers have a wealth of experience advising a wide range of borrowers.
Some of the most common reasons we find borrowers have locked into new fixed rates with early repayment charges that have not been suitable because of the high exit fees with fixed rates include:
- Jobs relocating overseas
- Moving in with partners
- Separating from partners
- Selling properties over the shorter term
- Plans to release funds from the property to pay for refurbishment works
If you are locking into a fixed rate make sure it is a suitable product.
Get started today
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