Product transfer
A definition with one worked EXAMPLE. The decision factors and the interactive numbers live on the comparison and calculator pages.
Last checked UK · illustrative onlyNot a lender or brokerAboutDisclaimer
Published by Rodway Labs — not a mortgage adviser
Published · Last revised
This page covers a short definition. For how it works, choosing between a transfer and a remortgage and the worked numbers, see the linked pages.
A product transfer is a new deal on the mortgage you already have, with the same lender. The loan is not redeemed and started again elsewhere, and the account usually stays in place.
Lenders also call it a rate switch, a product switch or a retention deal. The new product has its own rate, end date, fee and early repayment terms. The lender, the legal charge on the property and usually the balance and term stay the same, which is why a transfer often needs no new valuation or conveyancer.
EXAMPLE: transfer or new lender when the deal ends
- £185,000 over 22 years, current 4.19% deal ending.
- Product transfer at 4.39%, no fee: about £1,094 a month.
- New lender at 4.14%, £1,499 fees less £250 cashback (£1,249 net): about £1,069 a month, about £25 less.
- Payback on £1,249 of net fees at about £25 a month: about 50 months.
- Over 24 months the transfer is about £336 cheaper.
- Moving lender four months early, with the 2% ERC (£3,700) still live: the transfer is about £4,036 cheaper.
Illustrative only, using the site’s remortgage vs product transfer calculator. Scenario rates, not market quotes.
What a product transfer is not
- Not a remortgage. A remortgage is a new loan that pays off the old one, usually with a different lender, with valuation and legal work.
- Not a further advance. A further advance increases what you owe. A transfer changes the deal on the balance you already owe.
- Not porting. Porting moves an existing deal to a new property.
- Not rolling onto the SVR. Doing nothing when a fix ends is a reversion, not a transfer.
How it affects a remortgage
A transfer is the main alternative to moving lender, and fees often decide between them. In the EXAMPLE, the new lender’s lower rate does not cover its fees within 24 months. On a larger balance or a bigger rate gap the answer can flip, so run your own figures.
Because the loan is not fully redeemed, an ERC on the old deal often does not apply to a transfer. That is common, not a rule. A transfer is also not always the cheapest rate, and “same lender” does not mean “no checks”: the lender can still look at payment history and your loan to value, and can decline.
Get the offer in writing, with the rate, fee, start date and new ERC terms. A phone quote is not a transfer you can compare.
Where to go next
- Remortgage vs product transfer calculator — the comparison with your own figures.
- Remortgage vs product transfer — which is likely to suit you.
- Product transfer explained — how the process usually runs.
EXAMPLE: when the transfer stops being the cheaper option
- Transfer at 4.39%, no fee, 24 months
- about £15,810 interest
- New lender at 4.14%, 24 months
- about £14,897 interest + £1,249 net fees = £16,146
- Both rates held for 60 months
- transfer about £37,705 · new lender about £35,482 + £1,249 = £36,731
- Doing nothing: EXAMPLE SVR at 7.49%, 24 months
- about £27,213 interest
Illustrative only, interest compared on the same £185,000 over 22 years, switch timed after the current deal ends. Real deals rarely last 60 months at one rate; the row shows how the horizon changes the answer.
Common mistakes
- Assuming the existing lender’s rate is the lowest available. In the EXAMPLE the transfer wins over 24 months, but only by about £336, and over 60 months the new lender comes out about £974 ahead.
- Waiting until the deal has ended. The FCA notes you can usually arrange a new deal before the current one ends, and that offers are typically valid for three to six months.
- Assuming there are no checks at all. The FCA says that if you are up to date with payments and not borrowing more, a same-lender switch does not usually need an affordability check. Borrowing more brings one back.
- Ignoring the new tie-in. A transfer is a new deal with its own ERC and end date.
Edge cases
- Booking early with an ERC still live. Whether the old charge applies when you take a transfer before the end date depends on the lender’s retention terms, not a general rule.
- Borrowing more at the same time. The extra money is a further advance, usually on its own product and assessed separately.
- Arrears. MoneyHelper notes that being in arrears, or having missed payments in the last 12 months, makes moving lender hard, which can leave the existing lender’s deals as the realistic route.
- Execution-only. Many transfers are arranged without advice. MoneyHelper notes that this gives you fewer grounds to complain later if the product turns out to be unsuitable.
More reading
- Product transfer vs remortgage: a worked example — the same comparison in more depth.
Sources checked 2 November 2026
- FCA: support with mortgages and interest rates — offers typically valid 3 to 6 months, reversion rates, same-lender switches, ERCs and stress testing.
- MoneyHelper: remortgaging to cut costs — remortgage and product transfer definitions, switching costs, LTV formula, valuations, porting and negative equity.
Also see: MoneyHelper’s remortgaging guide describes a new deal from your current lender as a product transfer, and the FCA’s consumer mortgage support page covers affordability checks when switching to a new deal. Whether a transfer needs fresh checks depends on the lender and on whether you borrow more.
Remortgage Lab is published by Rodway Labs. It is not a lender, not a broker, and not FCA-regulated advice. Figures marked EXAMPLE are illustrative only. Last checked 2 November 2026.