Is a Remortgage Better Than a Product Transfer?
If you’re a homeowner with a fixed-term mortgage nearing its end, you’re likely contemplating your options. Two popular choices are remortgaging and product transfer. While both involve switching to a new mortgage deal, they differ in their approach and potential benefits.
The Allure of Remortgaging
Remortgaging involves switching your mortgage to a different lender, often with the aim of securing a lower interest rate. This can lead to significant savings over the remaining term of your mortgage. Additionally, remortgaging offers flexibility in terms of changing your mortgage type, such as switching from a fixed rate to a variable rate or vice versa. You may also be able to borrow additional funds if you require them for home improvements or other purposes.
The Simplicity of a Product Transfer
A product transfer, on the other hand, involves switching to a new mortgage deal with your existing lender. This process is generally simpler and faster than remortgaging, as there’s no need for a new property valuation or legal work. It’s also often a cost-effective option, as you may avoid paying certain fees associated with remortgaging.
When a Product Transfer Makes Sense
At PFG Mortgages we will make sure that we select the best option for your circumstances. While remortgaging offers greater flexibility and potential savings, a product transfer may still be the better choice for you in certain situations. If your current interest rate is already competitive, switching to a slightly lower rate with a product transfer may not yield significant savings. Additionally, if you’re approaching the end of your mortgage term and don’t require additional funds, a product transfer can provide a hassle-free way to secure a new deal without the complexities of remortgaging.
Making an Informed Decision
The decision between remortgaging and a product transfer depends on your individual circumstances and financial goals. It’s crucial to weigh the potential benefits of each option against the associated costs and complexities. Consider factors such as your current interest rate, the potential savings you could achieve, the costs of remortgaging or a product transfer, and your need for flexibility in your mortgage terms.
To make an informed decision, it’s advisable to consult with an independent qualified mortgage advisor like the team at PFG Mortgages. We will assess your situation, present you with tailored options, and guide you through the process of choosing the most suitable course of action for your financial well-being. Remember, the right choice will not only save you money but also provide peace of mind as you navigate your mortgage journey.
For all your mortgage needs don’t heistate to contact the team at PFG Mortgages our knowledge, at your service.