Remortgaging with the same lender

When you're looking for a new mortgage, you can either switch lender or stay with the same one. If you get a new deal with your current lender, it’s called a ‘product transfer’.

This can be the quickest and easiest option, but it might not give you the best rate. However, thanks to Saga Mortgages’ fee-free product transfer, you could save money in the process. In this five-minute read, we’ll take a detailed look at remortgaging with the same lender.

Fee-free product transfers

• No broker fees on product transfers.
• Switching to a new mortgage deal with your current lender? Good news - Saga Mortgages won't charge you a penny in broker fees for product transfers.
• Please note, if you're looking to borrow more through a further advance, our standard remortgage fee would apply.

You'll get a fair assessment of the pros and cons, and find out how simple it is to complete a product transfer with Saga Mortgages. If you're weighing up a product transfer vs remortgaging, you should soon know what’s right for you. Your home may be repossessed if you do not keep up repayments on your mortgage.

How does a mortgage product transfer work?

If you own a home and have a mortgage, a product transfer sees you switch to a new deal with your existing lender. When your current fixed rate comes to an end, your mortgage usually moves to a standard variable rate (SVR).

This can be more expensive. With a product transfer, you could avoid that higher rate by securing a new deal with your current lender.

As you’re staying with the same lender, a product transfer tends to require fewer checks and no legal fees. With Saga Mortgages, there are no arrangement fees either. This means it could be cheaper and quicker than remortgaging with a new provider.

If you're happy with your provider and they’re offering a good new rate, a product transfer could work for you. It can also keep the admin to a minimum. However, if your priority it to find the best deal in the market, you might benefit from shopping around. A good place to start is our rate comparison page.

What are the benefits of a product transfer?

1. You could save money. Some lenders reward loyalty by offering better rates to existing customers. When it comes to fees, you won't pay any exit fees if your fixed term has ended. It’s also unlikely you'll pay legal fees and, with Saga Mortgages, you won’t pay any broker fees. This means your savings on fees could total hundreds of pounds. If you’re looking to save in the short term, a product transfer could make financial sense.

2. You can save time. If you don't want to borrow more or change the length of your term, a product transfer can be quicker than switching lender. This is because there tend to be fewer checks and less paperwork to complete.

3.If you're staying with the same lender and you've repaid on time in the past, it's unlikely they'll do a new affordability check. This should mean no changes to your credit score. 

What are the risks of product transfers?

1. You might not get the best rate

Not all lenders reward loyalty. As a result, they might not offer you the best rates in the market. If you want to cut your monthly costs and save money in the long run, it's worth browsing deals from other lenders. With a wider range of options, there's more opportunity to secure a better deal.

2. They can be less flexible

Staying with the same lender could limit your options. If you want to borrow more or change the length of your term, you'll need a new affordability check.

In addition, you might not be offered as good an interest rate. It can also be tricky to make changes to the details of your agreement. For example, you won't be able to change the names on your mortgage even if you’ve got divorced.

Product transfers with Saga Mortgages

Are you nearing the end of your current mortgage deal or want to cut your monthly costs? Saga Mortgages is here to help. Our broker service covers a range of mortgage needs, including specialist solutions for over 50s. We'll find you the lowest rate from your current lender and search the best deals from over 100 other lenders.

That’s access to over 20,000 products. Whether you choose to stay with your lender or switch to another, our expert team will take care of everything. You can get started now by creating a free mortgage plan. It only takes a few minutes to complete and there's no credit check involved. 

You’ll soon see a range of remortgage deals available to you. Need to ask us a question? You can chat to a team of experts every day of the week, thanks to our partnership with award-winning broker Tembo. You'll soon see why they've been voted the UK’s Best Mortgage Broker four years running.

Call us on 0330 018 3071. Lines are open Mon-Thu 9am-8pm, Fri 9am-5:30pm, Sat-Sun 10am-3pm.