## Understanding Product Transfers for Landlords

A product transfer allows landlords to remain with their current lender but switch to a new mortgage rate once their existing deal ends. This process is typically straightforward, involving minimal paperwork, no property valuation, and no legal fees. Many lenders also waive arrangement fees for product transfers, making it a low-cost option.

**Advantages of product transfers include:**
– A quick and simple process.
– Usually no legal or valuation costs.
– Often no need for fresh affordability assessments.

However, product transfers come with limitations:
– A narrower range of mortgage products compared with remortgaging.
– Limited options to release equity.
– Rates may not be as competitive as those available on the wider market.

For landlords prioritising speed and simplicity, or those who do not require additional borrowing, a product transfer can be an efficient choice, especially if the current lender’s rates are close to the best available.

## What Remortgaging Entails

Remortgaging involves switching to a new lender and taking out a completely new mortgage. This route opens access to a broader market of lenders and products, which can include better interest rates, higher loan-to-value (LTV) ratios, and the ability to release equity for portfolio expansion or property improvements.

**Benefits of remortgaging include:**
– Access to the full range of mortgage products across the market.
– The opportunity to release equity for new purchases or refurbishments.
– Potentially lower interest rates if another lender offers a more competitive deal.

On the downside, remortgaging requires:
– Full affordability checks and underwriting.
– Property valuation and legal work, which add time and cost.
– Potentially higher arrangement fees compared to product transfers.

Landlords seeking flexibility, portfolio growth, or a move to a limited company structure may find remortgaging the better option despite the higher upfront costs.

## Case Study: Comparing Costs of Transfer and Remortgage

Consider a landlord whose two-year fixed mortgage ended in December 2025. Their current lender offered a product transfer at 5.75%, while another lender proposed a remortgage at 5.25% but charged a £2,000 fee. With a loan amount of £150,000, the 0.5% lower rate on the remortgage saved £750 annually, totalling £1,500 over two years. However, this saving was less than the £2,000 fee, making the product transfer the cheaper overall option.

If the landlord had wished to release equity for further investment, the remortgage would have been preferable despite the higher initial cost, illustrating how individual goals influence the best choice.

## When Product Transfers Are Most Suitable

Product transfers make sense for landlords who:
– Want a fast and straightforward process.
– Do not need to release equity.
– Have a current lender offering rates close to the market best.
– Prefer to avoid new affordability assessments.

## When Remortgaging Is the Better Option

Remortgaging is advisable for landlords who:
– Wish to release equity for portfolio expansion or refurbishments.
– Need access to a wider selection of mortgage products.
– Find their current lender’s rates uncompetitive.
– Intend to move their borrowing into a limited company structure.

## Practical Advice for Landlords in 2026

Landlords should begin reviewing both product transfer and remortgage options six to twelve months before their current deal expires. It is important to calculate total costs, including fees, rather than focusing solely on headline interest rates. Modelling cashflow under both scenarios helps to understand the long-term financial impact. For landlords with multiple properties, a mixed approach may be optimal, with some properties transferred and others remortgaged depending on individual circumstances.

## Conclusion: No One-Size-Fits-All Solution

Choosing between a product transfer and a remortgage depends on each landlord’s strategy and priorities. Product transfers offer efficiency and lower costs, while remortgages provide greater flexibility and potential savings. Landlords should carefully compare both options before deciding to ensure the choice aligns with their goals for stability or growth.

## Speak to Our Sponsor

Our sponsor offers expert comparison of product transfer and remortgage options for landlords, modelling total costs and long-term implications to help you make an informed decision.