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Residential Product Transfers

“Residential Product Transfers” typically refer to a specific type of mortgage transaction or offering provided by mortgage lenders. Residential Product Transfers are also commonly known as “Mortgage Product Transfers” or “Product Transfer Mortgages.” These transactions involve existing mortgage borrowers choosing to switch from their current mortgage product to a different one offered by their current lender, all without changing their lender.

Here are the key points to understand about Residential Product Transfers in the UK mortgage market:

  1. Existing Borrowers: Residential Product Transfers are exclusively available to borrowers who already have a mortgage with a specific lender. It allows these borrowers to review and potentially change the terms and conditions of their existing mortgage without the need to remortgage with a different lender.
  2. Lender’s Product Range: Mortgage lenders offer a range of mortgage products with various interest rates, terms, and features. A Residential Product Transfer enables borrowers to switch from their current mortgage product to another one offered by the same lender.
  3. Avoiding Remortgaging: One of the primary benefits of Residential Product Transfers is that borrowers can make changes to their mortgage without going through the remortgaging process. This can save time and money by avoiding legal and valuation fees associated with remortgaging.
  4. Changing Terms: Borrowers can use Residential Product Transfers to change aspects of their mortgage, such as the interest rate (e.g., moving from a variable rate to a fixed rate), the term of the mortgage, or the type of mortgage product (e.g., switching from an interest-only to a repayment mortgage).
  5. Competitive Offers: Lenders often provide special offers and deals to existing borrowers to encourage them to consider Residential Product Transfers. These offers may include lower interest rates, reduced fees, or other incentives.
  6. Affordability and Eligibility: Borrowers must meet the lender’s affordability criteria and eligibility requirements to qualify for a Residential Product Transfer. Lenders will assess the borrower’s financial situation to determine if the requested product change is feasible.
  7. Independent Advice: While borrowers can choose to proceed with a Residential Product Transfer without seeking independent advice, it is generally advisable to consult a mortgage advisor or broker to ensure that the chosen product is the most suitable option given the borrower’s financial goals and circumstances.

Residential Product Transfers offer existing mortgage borrowers in the UK an opportunity to tailor their mortgage terms to better suit their current needs and financial situation without the complexity and costs associated with remortgaging. However, it’s essential for borrowers to carefully consider the terms and costs associated with the new mortgage product and to compare it with other available options before making a decision.

Your home may be repossessed if you do not keep up repayments on your mortgage.