Product Transfer Mortgage Explained

Is a product transfer better than remortgaging with bad credit?

Often, yes, and specifically because of the credit angle. Since most lenders don't re-run a full credit check for an existing customer's product transfer, a CCJ, default or missed payment picked up since your last mortgage was arranged may not affect your ability to move onto a new rate with the same lender. Remortgaging to a new lender means a fresh application and a fresh credit assessment — which is exactly where new adverse credit can cause a decline that a product transfer would have avoided.

Can I still shop around if I do a product transfer?

Not through the transfer itself — you're choosing from your current lender's own range only. Some brokers will check both your lender's product transfer rates and the wider market before recommending which route to take, since a product transfer isn't automatically the cheapest option even when it's the simplest.

What if my credit has improved since my last mortgage?

That's usually the case where remortgaging beats a product transfer. If your credit file has genuinely improved — a default has aged, a CCJ has been satisfied — a fresh application to the wider market may unlock better rates than staying with your current lender's limited product transfer range. It's worth checking both before your existing deal ends.