Product Transfers
We like to make things as clear and simple as possible to help you get the most from your mortgage.
If you have come to the end of your product or fixed rate, or if it ends in the next 6 months then now is the right time to be getting in touch.
Evergreen Mortgages can help you to make sure you are always on the best mortgage deal for you and your family.
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Get to know your mortgage:
Your mortgage is made up of 2 parts, the term and the product, for example, you could have a 22 year mortgage term on a 5 year fixed product.
Once you come to the end of your 5 year fixed product, your mortgage carries on for the remaining term of the mortgage. The term was for 22 years, so still has 17 years left to run and if you do nothing, the mortgage reverts to the rate that the lender described to you in your mortgage offer, often the SVR or standard variable rate.
Remortgaging or selecting a product transfer, allows you to secure a more beneficial rate and to make sure you pay the lowest possible mortgage payment.
What is a product transfer?
Sometimes the best deal for a new product could be with your current lender, we can check the product transfer rates available with your current lender and compare them against a wide range of lenders to ensure you are accessing the best deals available to you.
If after our discussions, the best deal for you is with your current lender, we can transfer your mortgage onto the new product for you. We will make things as clear and simple as possible to help you get the most from your mortgage.
Another reason why a product transfer could be suitable for you is that product transfers are able to complete in a much shorter timeframe and often have no affordability, checks or income and outgoing assessments completed.
Get in touch today so we can help you with your options.
Tips to ensure your mortgage is on the best rate
You can check this online by looking through your original paperwork or by contacting your lender directly. Some products will be for exactly 5 or 2 years, whereas some have a specific expiry date.
This is the full length of your mortgage deal and not simply the product. Remortgaging is a good time to assess if you would like to keep this number of years the same, extend it or shorten it depending on your budget and requirements. If you do extend the time you’ll be paying your mortgage longer and could end up paying more interest.
This will help you work out the current equity in your home. It is important at the prices that you look at all the sold prices and not the for sale prices, as these are a more reliable indication of how much your property is worth. It is also important to only look at ‘like for like’ properties. For example, a detached three bed is not the same comparison as a three bed semi or terraced, ultimately the lender will request a valuation on the property to check this but it helps to have an idea at the beginning.
Decide if you need any additional money raised, or if you have savings that you would like to pay into your mortgage to reduce it.
FAQs
You should be able to check your original mortgage offer to see exactly what will happen after your fixed rate ends, but generally you will automatically move onto a standard variable rate with the lender. At this point, any early repayment charge is generally finished, and you are free to move the mortgage to a new lender or to choose a new product depending on your current provider’s options.
There are a couple of reasons why your current lender may not offer you a product transfer. Some lenders just don’t offer product transfers, particularly if you had a need originally for a specialist lender, this facility may not be available to you. We can help you check this. Another reason a product transfer may not be available to you is if you are in current mortgage arrears or have missed payments or have opted to go into some form of arrangement or payment holiday with the lender. These things may not always preclude you from a product transfer, but if there are no options available for you, we can find out the reason for this, to give you a clear understanding of what you need to do to be able to access a product transfer moving forwards.
A product transfer, just like your first mortgage is a time for you to ask yourselves some questions on your future plans. Your future plans will dictate what type of product you can choose and there are many different types of products available to you not just a two or five year fixed. Make sure when you speak with us, to discuss all those plans so we can guide you in the right direction. Contact us now to guide you through your choices.
Yes, you can still sell if you take out a product transfer. However if you are planning to sell, you must let your mortgage advisor know because a new product will likely mean new early repayment charges, so they should always be considered and taken into account. Early repayment charges vary from lender to lender and product to product, so we can help you secure a product with no or minimal ERC’s (or early repayment charges) to make sure you get the best monthly payments now, but it doesn’t hinder your future plans. Some mortgages allow you to ‘port’ your mortgage or move it, to a new property with no early repayment charges and this could be another option for you allowing you to secure a new deal now without waiting for your plans to be finalised.
Providing you have been meeting your mortgage payment obligations, many lenders can offer you a product transfer onto a new beneficial rate even if your circumstances have changed dramatically.
We can help you to review how these changes will affect your payment of the mortgage moving forward, the best products for you to select moving forward and we can also review any insurances you have as if your circumstances have changed, your insurances may need reviewing too.
Click here for more details on different insurance types.
For a product transfer you would not normally require a solicitor.
Your mortgage lender registers a charge against your property on the land registry and the deeds of your home. When you change lender, you need a solicitor to do this part of the process for you, but as a product transfer is only done through the same lender there is no need to change this charge, so no solicitor is needed.
