What is a product transfer?

A product transfer means taking a new deal with your existing lender when your current one ends. There is usually no new affordability check, no legal work, and it can often be arranged online in under an hour.

Is a product transfer cheaper than remortgaging?

It has lower switching costs (usually zero), but the rate may not be the best available. If the open market beats your lender's retention offer by more than about 0.2 percentage points, a full remortgage usually wins despite the extra effort.

Does a product transfer need a credit check?

Generally no — like-for-like product transfers usually skip affordability and credit checks, which makes them valuable if your income has fallen or you've become self-employed since your last application.

Product transfer vs remortgage: stay or switch?

When your fix ends you have two exits: a new deal with your current lender in ten minutes, or a full remortgage to whoever's cheapest. The right answer is a number, not a preference.

The comparison

	Product transfer (same lender)	Remortgage (new lender)
Speed	Minutes to days	4–8 weeks
Affordability check	Usually none (like-for-like)	Full application
Legal work / valuation	None	Needed, often free with the deal
Rates on offer	Your lender's retention menu only	Whole market
Fees	Usually £0 (product fee optional)	£0–£2,000 all-in, varies by deal
Borrow more / change term	Limited	Full flexibility

The 0.2% rule of thumb

Effort has a price. On a £200,000 balance, each 0.25 percentage points of rate is roughly £25–30 a month. So:

Market beats your lender's offer by less than ~0.2% → take the transfer, keep your afternoon.
Market wins by more than ~0.2–0.3% → the remortgage typically pays for its paperwork many times over on a 2–5 year deal.
Balance under ~£100k → raise the threshold; the same rate gap moves fewer pounds.

Put both offers into the calculator to see the gap in pounds per month rather than percentage points — the decision usually makes itself.

Compare your two offers — free calculator, no sign-up

When the transfer wins regardless of rate

Your finances look worse on paper than last time. Newly self-employed, income down, missed payments, maternity leave: like-for-like transfers usually skip the affordability check a new lender would run.
You're selling within a year or two. Shorter horizon, less to gain, and some transfers carry lower or no ERCs early on.
The clock has run out. Deal ends next week? Transfer now to dodge the SVR; a full remortgage can still follow later — but check the new deal's ERCs before planning a double-switch.

When the remortgage wins beyond rate

Your LTV band improved. If your home's value rose or the balance fell through a 75% or 60% loan-to-value threshold, the whole market reprices in your favour — retention menus often don't reflect it fully. A remortgage triggers a fresh valuation.
You want structural changes. Borrowing more, shortening the term, adding or removing a name — transfers handle these poorly or not at all.

Do both, pay for one

Nothing stops you getting your lender's transfer offer (ten minutes online, no commitment) and a whole-of-market quote from a fee-free broker, then choosing. Lenders count on you not comparing; comparing is the entire job.