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Product transfer vs remortgage (UK): what’s the difference?

A product transfer is switching deals with your current lender; a remortgage is replacing your mortgage (often with a new lender). Here’s the practical difference.

Published: 30/05/2026 • Last verified: 30/05/2026

The short answer

A product transfer is switching to a new deal with your current lender. A remortgage is taking a new mortgage to replace your old one — often by moving to a different lender.

The main difference isn’t the label, it’s the total cost (rate + fees + any ERC) and how much admin is involved. Documentation for regulated mortgages is designed to help you compare total costs, not just the headline rate.

A tiny example

You have a £180,000 balance and 2 years left on your current fixed deal.

  • Your current lender offers a product transfer at 4.60% with no product fee.
  • A new lender offers a remortgage at 4.40% but charges a £999 product fee (plus potential legal/valuation costs).

Even though 4.40% is a lower rate, the £999 fee can wipe out the saving unless the rate difference is big enough or you keep the deal long enough for the monthly saving to outweigh the fees. That’s why comparing the “all-in” cost matters.

FAQ
Is a product transfer always quicker than a remortgage?
Often, but not always. Switching with your current lender can be simpler, but lenders may still do checks depending on your situation and the product.
Do I need a solicitor for a product transfer?
Often there’s less legal work than a full remortgage, but it varies. The lender will tell you what’s required for your switch.
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