Remortgage Lab

Remortgage vs product transfer

Last checked UK · illustrative onlyNot a lender or brokerAboutDisclaimer

Published by Rodway Labs — not a mortgage adviser

The tool: enter your own figures for both paths. What a product transfer is: the explained guide. Which factors to weigh: the comparison page. This screen is two paths on your inputs. Starters are the labelled EXAMPLE, not a quote.

Equations and method

Assumptions

  • EXAMPLE starters: £185k, 22y, transfer EXAMPLE 4.39%, remortgage EXAMPLE 4.14%, 2% ERC, £1,499 fees, £250 cashback, 24 months.
  • Same balance and remaining term for both paths — stay vs switch on one screen.
  • No early redemption after the switch within the window.
  • Ignores eligibility and valuation outcomes. ERC estimate — check offer wording.

Your inputs

Starter figures are UK EXAMPLE values you can edit. Scenario rates, not a market quote. 4.19%, 4.39%, 4.14% and 7.49% SVR on this site are labelled EXAMPLE figures, last checked 2 November 2026. Results update as you type.

Results

Stay — product transfer

Monthly

£1,093.98

Interest (period)

£15,810

Fees

£0.00

Net cost

£15,810

Switch — remortgage

Monthly

£1,068.80

Interest (period)

£14,897

Fees + ERC − cashback

£4,949.00

Net cost

£19,846

Net difference (remortgage − transfer)

Product transfer looks lower-cost on these inputs

£4,036

Estimated ERC on remortgage path

Check offer wording

£3,700.00

Soft factors: remortgaging usually means a credit check and full underwriting; transfers may be simpler but rates/fees vary. This lean is illustrative only.

Method: two parallel amortising projections on the same balance and remaining term. Net cost ≈ interest over the comparison period + fees (− cashback). Remortgage path includes estimated ERC. Check lender offer wording.

Illustrative only — not personalised advice, not a credit or mortgage offer, and not an FCA-regulated recommendation. Your offer and ESIS set the real ERC, fees and terms. Full calculator disclaimer.

What to do next

How to use this calculator

  1. Enter your balance, remaining term and current rate (the current rate is only used if your ERC is worked out as months of interest).
  2. Enter the product transfer rate and any transfer fee your current lender quotes.
  3. Enter the new lender's remortgage rate with its product, legal, valuation and broker fees and any cashback.
  4. Add the ERC you would pay if you leave early, then choose how many years to compare.
  5. Read the net difference (remortgage minus transfer): a positive figure means the transfer costs less on these inputs.
Methodology and equations

Two parallel amortising projections on the same balance and term. Net cost ≈ interest over the period + fees (− cashback). Remortgage path may include ERC.

The assumptions are listed in the box near the top of this page.

How this calculator works

Use this only to compare the figures. The definition of a product transfer is the explained guide. The factor table is the comparison page. A transfer often skips full conveyancing. It is not always cheaper.

How this is calculated

  1. Both paths use the same balance and remaining term. Interest is added up month by month over the comparison period at the product-transfer rate and at the new-lender rate.
  2. Product transfer cost = its interest + any transfer fee.
  3. Remortgage cost = its interest + product, legal, valuation and broker fees + any ERC − cashback (the fee part never goes below £0).
  4. Difference = remortgage cost − product transfer cost. Within £100 either way the result reads “similar”.

This matches the code behind the tool. The full formulae are on the calculator methodology page.

Worked example

Scenario rates, not a market quote

EXAMPLE house: £185,000, 22 years, current 4.19%. Product-transfer rate EXAMPLE 4.39% with no switch fee. New-lender rate EXAMPLE 4.14%, fees £1,499, cashback £250. Scenario rates, not a market quote, last checked 2 November 2026.

With the EXAMPLE 2% ERC still live, the remortgage path carries about £3,700 extra and usually loses on a 24-month view.

In figures: with the ERC live the remortgage path totals £19,846.47 over 24 months against £15,810.24 for the transfer, about £4,036 more. With no ERC the gap is about £336: the 0.25-point lower new-lender rate saves £912.77 of interest, but £1,249 of net fees outweighs it.

Limitations: what this ignores

  • Whether valuation or legal work is waived on a transfer.
  • Retention criteria. A transfer can still be declined.
  • A transfer fee. The EXAMPLE assumes £0.
  • Porting and further advances.

Sources

Guides that go with this tool

Questions

Is a product transfer a remortgage?
No. You stay with the same lender. A remortgage here means a different lender.
Do I still need a solicitor?
Often lighter on a transfer, and usual on a full remortgage. Do not assume £0 until the offer says so.
Should I wait until the ERC ends?
Run both dates. Waiting removes the ERC. It can also mean months on SVR.
Why is the transfer rate higher in the EXAMPLE?
So fees can be seen against a small rate gap. Your quote may differ.
Does this check affordability?
No. A cheaper rate is unusable if you are not offered it.

Notes & FAQs

What soft factors does this ignore?
Credit checks, underwriting, portability, cashback clawback, and whether a transfer product is even available. Product transfers are lender-specific.
Why might transfer win even with a higher rate?
Lower or zero fees and no ERC can outweigh a slightly higher rate over a short comparison window.

More tools & guides