Why more clients are choosing product transfers over remortgaging

Product transfers allow your client to secure a new fixed rate deal with us without starting the mortgage process from scratch. It’s quicker and easier as there’s no legal process, no need for a property valuation, and no affordability reassessment required. It’s often far more convenient for clients with complex cases or specialist lending needs.

At Foundation Home Loans, we’ve built our product transfer process with exactly this kind of efficiency in mind. They’re available for both residential and buy to let borrowers, including limited companies, whose mortgages originated with Foundation Home Loans and are up to date with payments. Even in certain situations where remortgaging might offer many advantages, we’re seeing more and more clients choosing to stay put. Not because it’s the default, but because it’s simply the better fit. 

Product transfers - a simple switch, with real benefits

For many borrowers, the appeal of a product transfer lies in how straightforward it is. Once a client approaches the end of their fixed rate, we can transfer them onto a new deal with minimal paperwork and virtually no disruption. There’s no need to revisit income or credit status if the loan amount stays the same, which is particularly useful for self-employed clients, portfolio landlords, or those whose financial situation has changed since they took out the original loans.

There are also fewer costs involved. Remortgaging can come with arrangement fees, legal fees, valuations, and broker costs, all of which can add up. Product transfers typically avoid most of these charges entirely. Transferring at the end of a fixed term means your client won’t face any early repayment charges, making it a more cost-effective way to secure a new deal. The standard £995 product transfer fee can either be paid upfront or added to the loan, depending on what works best for the client.

Another major benefit is that the structure of the original loan remains intact. That means clients keep their current mortgage balance and term, which is particularly useful if their existing deal includes specific features or if they’re working within a specialist structure like a limited company or HMO. No changes to the repayment type, term, or loan amount are permitted through a product transfer, ensuring a smother continuation of the original product setup.

Importantly, there’s no affordability reassessment, provided the amount stays the same. This is ideal for clients whose financial situation may have changed since their original application, particularly self-employed borrowers, portfolio landlords, or those with complex income streams. If their payment history is clean and the account is up to date, they’re likely to be eligible for a quick, straightforward switch.

For brokers managing time-sensitive cases, speed is often the deciding factor. Product transfers can typically be completed faster than a full remortgage, helping clients avoid being stuck between deals or costly SVR periods. Once the product transfer offer is accepted and the £995 fee is settled, the new rate is implemented the day after the fixed rate ends, as long as this happens at least 15 working days in advance.

Clients also gain access to our competitive rates as our dedicated transfer rates include reductions on selected options. This includes our green range, which offers lower pricing for landlord with properties rated EPC A-C. This gives them a real incentive to stay put, as they can benefit from good deals while also benefiting from not having to start over.

For portfolio landlords, a product transfer is also a great way to simply portfolio management. Keeping lending under one roof helps reduce admin, makes it easier to track multiple properties and is important to clients operating across various product types like HMOs, MUFBs, or short term lets. We accept product transfer from individual landlords and limited companies, including those with non-mainstream credit or complex setups.

And finally, it’s about maintaining strong relationships. A product transfer allows the broker to remain the client’s trusted advisor, especially when a remortgage isn’t necessary. By working with a specialist lender that understands the nuances of buy to let, you continue to deliver expert guidance without losing the client to another lender. It’s not just a product switch, it’s a chance to keep the long-term relationship intact.

When remortgaging might be the right move

That said, remortgaging remains a valuable tool, particularly when a client is looking to raise capital. Or when a client is looking to adjust their loan term, or explore a wider pool of products not currently offered by their existing lender. There may be opportunities to restructure borrowing, consolidate debts, or access more flexible repayment terms through a full remortgage, depending on the individual’s goals and circumstances.

At Foundation Home Loans, we understand the importance of giving brokers and clients both options. That’s why we support a full range of remortgage and product transfer solutions. But when speed, simplicity and cost-efficiency are the top priorities, and when the client’s aim is simply to secure a new deal at the end of their term, a product transfer is often the smarter, more practical route.

Direct debit amounts will be updated and confirmed to the customer before the product transfer completes, ensuring transparency around new repayments. We don’t offer product transfers on mortgages started before 2015, and transfers are not available for clients wishing to amend repayment type or extend their term. In these instances, a remortgage is required. 

If your client is approaching the end of their deal, now is the time to talk. Our team is ready to help you explore your options and guide you through a smooth transition, whether that’s through a product transfer or even a remortgage.

With Foundation Home Loans, it’s not just about staying with us, it’s about moving forward in the right way.

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