As you move ever closer towards the end of your mortgages’ initial fixed period, the next step would be to take a look at your options for a remortgage in Newcastle. If you took out this remortgage with the same mortgage lender, you would be doing a product transfer.
Not all homeowners may be aware of this option, especially if you have been doing your own research ahead of your fixed-term ending and only reading about remortgages. In truth, product transfers are on par with, if not arguably more popular than a remortgage in Newcastle.
What is the difference between a remortgage in Newcastle & a product transfer?
A remortgage is where you will take out a new mortgage to replace your previous mortgage, with a new mortgage lender.
Providing you have a straightforward case, this will come with likely lower interest rates and monthly repayments. You will need to submit documentation in order to qualify, however.
On the other side of the coin, with a product transfer, you will be taking out a new mortgage with the same mortgage lender you were previously with.
So long as your circumstances are the same, you will typically not need to submit any further documentation to the mortgage lender, meaning you’ll likely have a much quicker process as you choose a new deal you qualify for and switch to that from your previous one.
What are the benefits of a remortgage with the same lender in Newcastle?
The main reasons as to why a homeowner may instead look to do a product transfer, are pretty appealing ones, the one that stands out the most being that you may actually save yourself money in doing so.
This is because you won’t have any need for solicitors or a valuation, so those fees will not be present. You also may save yourself from having to pay a redemption fee or early repayment charge (though you might still have mortgage arrangement fees).
It may also save you a lot of time during your process and allow for an easier service. Remortgages in Newcastle can often take some time, whereas because the mortgage lender already knows you and probably won’t want documentation, it can go much quicker.
Why might someone choose to do a remortgage in Newcastle over a product transfer?
Contrary to the latter discussion point, some homeowners may instead opt for a remortgage in Newcastle. The reasons this is a popular choice for many, is because you usually have a range of deals to choose from.
In remortgaging, you will have access to more financial institutions than just your current mortgage lender, with potentially better deals available if you were to go elsewhere. If you do find a better rate than you are currently on, you will no doubt save money in the long run.
Additionally, a product transfer only gives you the possibility of taking out a new mortgage on the same term. A remortgage, on the other hand, will allow for you to possibly reduce your term. This in turn, could make your next remortgage process go much easier.
Another popular reason why a homeowner may do this, is to remortgage to release equity (equity being the difference between what the property is worth and your remaining balance), as a means of funding possible home improvements, to put down a deposit for another property, and more.
Releasing equity doesn’t quite apply when you are taking out a product transfer, though you may be able to arrange a product called a further advance. Book a free mortgage appointment with a mortgage specialist to discuss your options for a further advance or product transfer.
Do I need a solicitor to remortgage with the same lender in Newcastle?
As a general rule of thumb, because you will be staying in the same property, with the same mortgage lender, you will not need to hire the services of a solicitor for a product transfer.
Where this will become a necessity, is if you are looking to make any changes to your mortgage terms, such as removing or adding a person to or from your mortgage. You will most likely need a conveyancer or solicitor for this.
If I remortgage with the same lender in Newcastle, will I need to have a credit check?
Generally speaking, you will not need to have a credit check taken out on you for a product transfer. This may vary between some mortgage lenders, however. The reason this tends to be the case, is because the mortgage lender will already know that you are trustworthy with repayments.
Alternatively, if you have had any credit problems during your current mortgage or you are remortgaging with another mortgage lender to achieve something like to release equity, you may have a further credit check taken out on you.
Is there anything else I need to consider when I do a product transfer in Newcastle?
When you do a product transfer, you may need to look at whether or not you have any future plans for moving home in Newcastle. Your current deal may not give you the chance to port your mortgage to a new home.
Taking out a remortgage in Newcastle instead of a product transfer, can allow you to have the flexibility to port your mortgage if it becomes necessary.
How can a mortgage broker in Newcastle help with a product transfer?
When you contact a member of our dedicated team for remortgage advice in Newcastle, they will be able to take a look at your case and review what you are looking to achieve.
Not only will our team be able to get you through your mortgage process in a quick and efficient manner, but you’ll benefit from the selection of mortgage deals available to you, thanks to the vast amount of mortgage lenders we have on our panel.
Our service goes beyond just your mortgage process though, we truly do care about our customers. If you’re looking to product transfer and we think you’d be better off with a remortgage instead, we will say so. The same applies the other way around too.
We believe in a wholly transparent and honest service with the customer, putting you first. To discuss your options for a product transfer, or for further remortgage advice in Newcastle, book your free remortgage review and we will look at how we can help you.
Date Last Edited: April 14, 2023
