Product Transfer V Remortgage in Leicester

As your initial fixed period of your mortgage approaches its end, it’s a good idea to start considering your options for a remortgage in Leicester. One of these options is a product transfer, which involves remortgaging with the same lender.

Product transfers might not be as widely known as traditional remortgages, especially if you’ve been doing your own research. The truth is that product transfers are becoming increasingly popular, and some may argue that they are just as, if not more popular than a full remortgage in Leicester.

What is the difference between a remortgage in Leicester & a product transfer?

A remortgage in Leicester involves securing a new mortgage with a different lender to replace your current one. This often leads to more attractive interest rates and reduced monthly repayments. To qualify for this new deal, however, you’ll need to submit the required documentation.

On the other hand, a product transfer allows you to stay with your current lender. This means that if your circumstances haven’t changed significantly, you likely won’t need to provide additional documentation. You can choose a new deal that you qualify for and have it replace your existing one hassle-free.

What are the benefits of a remortgage in Leicester with the same lender?

Opting for a product transfer can be highly appealing to homeowners for several reasons, starting with potential cost savings. Unlike a full remortgage, a product transfer eliminates the need for solicitors or property valuation fees, resulting in reduced expenses.

While arrangement fees might still be applicable, you may also avoid redemption fees or early repayment charges. Another advantage of a product transfer is the time and effort saved. Traditional remortgages in Leicester can sometimes take a while to complete, involving various paperwork and documentation.

With a product transfer, the lender is already familiar with your financial situation, making the process much quicker and more streamlined. This can lead to a smoother and easier experience overall.

Why might someone choose to do a remortgage in Leicester over a product transfer?

On the other hand, some homeowners may prefer a remortgage in Leicester due to its inherent flexibility. Unlike a product transfer limited to your current lender, a remortgage opens up a wider range of options with potentially better deals available elsewhere.

Finding a much-improved interest rate can lead to significant long-term savings.

Moreover, a remortgage allows for the possibility of new terms, providing greater control over your mortgage arrangement. This flexibility can prove beneficial when planning for future remortgage processes.

One popular reason to opt for a remortgage in Leicester is to release equity from the property. By doing so, homeowners can access the difference between their outstanding mortgage balance and the property’s current value.

This released equity can be used to fund home improvements, contribute to the deposit for another property, or for other financial needs.

While product transfers may not accommodate equity release in the same manner, some lenders may offer a solution called a further advance, allowing additional borrowing on top of the existing mortgage.

To explore these options further and find the most suitable choice for your circumstances, consider seeking advice from a mortgage specialist.

Do I need a solicitor to remortgage in Leicester with the same lender?

In a product transfer scenario, where you are staying in the same property with the same lender, the need for a solicitor is usually bypassed. This streamlined process doesn’t require legal representation.

If you are considering adjustments to your mortgage terms, such as adding or removing a name from the mortgage, engaging a conveyancer or solicitor may become necessary to handle the legal aspects of the transaction.

If I remortgage in Leicester with the same lender, will I need to have a credit check?

Generally, a product transfer won’t require a credit check, although some lenders may have different policies.

The main reason for this is that the existing lender already has a history of your mortgage repayments and trusts you to fulfil your obligations. There are certain situations where a credit check may be necessary.

For instance, if you’ve encountered credit issues during your current mortgage term or if you are remortgaging with a different lender to release equity or pursue other financial goals, the new lender may conduct a credit check as part of their assessment process.

Is there anything else I need to consider when I do a product transfer?

During a product transfer, it’s essential to consider your future plans, especially if you anticipate moving to a new home. Some existing mortgage deals may not offer the option to “port” your mortgage, meaning you can’t transfer it to a new property.

Opting for a remortgage in Leicester, on the other hand, can provide more flexibility. With a remortgage, you may find deals that allow you to port your mortgage, giving you the ability to transfer it to a new property if the need arises in the future.

This added flexibility can be valuable, especially if you have plans for potential moves down the line.

How can a mortgage broker help with a product transfer?

Our dedicated team of remortgage advisors is here to help you every step of the way. When you reach out to us, we’ll carefully assess your situation and understand your goals to find the best solution for you.

With access to a wide panel of mortgage lenders, we can offer you a range of competitive deals that suit your specific needs. Our priority is your satisfaction, and we go above and beyond to ensure a smooth and efficient process.

Rest assured, our commitment to your well-being means we won’t hesitate to suggest the best option for you, even if it means recommending a remortgage instead of a product transfer or vice versa.

Transparency and honesty are at the core of our service, and you can trust that we always put your interests first. Whether you’re considering a product transfer or a remortgage in Leicester, we’re here to provide valuable advice and guidance.

For a comprehensive review of your options and personalised remortgage advice in Leicester, don’t hesitate to book a free remortgage review with us. Let’s explore how we can help you in achieving your financial goals.

Date Last Edited: December 6, 2023