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Are borrowers still going for product transfers over remortgage?

Journalist: Shekina Tuahene, Mortgage Solutions

ended 13. June 2023

Hi all, this is for Mortgage Solutions in response to a poll we ran.

We asked: Are product transfers becoming more popular than remortgages? 

And brokers responded:

  • Yes - 80.6% 
  • No - 6.5% 
  • I haven't noticed a change - 12.9% 

Do these responses align with your experiences? What are the reasons for this? Are borrowers enquiring more about product transfers or when presented with both options, is that what they initially want to go for?

2 responses from the Newspage community

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Editor
Justin MoyVerified
Managing Director at EHF Mortgages
There are a lot of positivies with Product Transfers at the moment. The ability to reserve a mortgage deal quickly, especially with rates being pulled at a moments notice. The rates themselves are actually quite competitive, rarely is there a hug difference between the open market options and those on offer by the current lender. Having the option to re-apply is available from most lenders, so when rates do eventually decrease, there may be an opportunity to cancel and take a better deal. Clients just need to remember to do this via a broker, to get the advice and ensure they have a pro-active partner checking on alternatives all the way to the expiry of their current deal.
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Gary Bush0
Financial Adviser at MortgageShop.com
At this awful time for the mortgage industry as a whole Product Transfers can take a lot of the lender rate removal frustration away as they are easier to process and far less time-consuming - which allows advisers to act much faster and secure a fixed rate.