What’s the difference between mortgage porting and a product transfer?
When you port your mortgage, it’s usually because you’ve got a fixed rate or a rate that you’re tied into – but you want to move house. Rather than pay early repayment charges, you can ‘port’ the existing mortgage to your new property.
Meanwhile, with a product transfer, you’re staying in your existing property. You’ve got no intention of moving. You are literally just changing your mortgage product to get a better rate.
Are there differences in the process for remortgaging and mortgage product transfer?
They are slightly different. A remortgage usually needs more information, because the lender is starting from scratch with you. The lender will need to see your payslips and bank statements to prove your income and your outgoings. They’ll also do a new credit check on you.
With a product transfer, because it’s your existing lender there’s no credit check. They recognise that you’ve been paying your mortgage for years and assume that you can carry on doing that. You won’t usually need payslips and bank statements either.
Are there any differences in rates and fees?
There isn’t a big difference. Some lenders do offer retention products to tempt clients to stay with them, so sometimes rates are slightly better, or there might be a slight discount on fees. Generally fees do apply, however.
Making the decision is a case of looking at what other products are available, comparing rates, fees and criteria and weighing up whether it’s worth remortgaging or whether to stay with your existing lender.
What are the advantages and disadvantages of remortgaging versus a product transfer?
The main benefit to remortgaging is that you have more flexibility. You can potentially borrow more, extend your term or shorten the term. A product transfer is more static – it is literally just changing the interest rate.
The benefits of a product transfer are that there’s less documentation involved, so it can often go through more quickly.
Can I remortgage with the same lender?
A remortgage with the same lender is effectively a product transfer. Your existing lenders won’t actually allow you to remortgage with them. You can ask for further advances and to amend the mortgage term, but that’s an amendment to your existing mortgage rather than a full remortgage.
By speaking to a mortgage adviser you can get clear recommendations into whether a remortgage is the way to go or whether a product transfer would be better. Sometimes, if your circumstances have changed but it’s a short term issue, you can look at a short term product transfer and then remortgage in future.
Can I remortgage to pay off debt?
Yes – many people remortgage to pay off debt. Again, it’s best to speak to an adviser because there are sometimes better ways to manage debt than utting unsecured debt onto a mortgage that’s secured on your property.
An adviser would look at your outgoings and find ways to save money, overpay on credit cards or perhaps reduce your mortgage payment to help you pay those debts off more quickly.
Why should I talk to a mortgage broker for a product transfer?
We have a wealth of experience that means we can find the most suitable solution for every client. We’ve also got access to a wide range of lenders and products so we can get you the lowest interest rates.
Whatever your circumstances are, we’ll have seen it before and can help. It could be by remortgaging, a product transfer or simply through advice to improve your current situation, with a view to revisiting your mortgage options in the future. Just get in touch for an initial chat and we’ll take things from there.
