Product transfer (rate switch)
You stay with your lender and move to one of its new deals. No valuation (the lender uses an indexed figure), no solicitor, no new affordability assessment with most lenders, no proof of income. It can be done online in minutes and completes on the day your old deal ends. A broker can arrange it for you and is paid by the lender for doing so.
Choose it when: the rate is competitive; you would fail a new affordability test elsewhere (the rent has not kept up with stress rates, or your circumstances have changed); you plan to sell within a couple of years and want a short deal with low fees; or time is short.
Remortgage to a new lender
A full application: credit search, income and rent evidence, valuation, legal work. Four to eight weeks. In return you get the whole market, which for buy-to-let includes forty-plus lenders with very different views on rent, company structures and property types. You can also borrow more, change the term, or move the property into a limited company at the same time.
Choose it when: the product transfer rate is not competitive; you want to raise money; your property or structure suits a specialist lender better; or the current lender's stress test would cut your loan and another lender's would not.
The comparison that matters
Compare the total cost over the deal period, not the headline rate: monthly interest times the months, plus the arrangement fee, minus any cashback, plus valuation and legal costs if they are not free. Our switching calculator does it. On smaller loans (under about £100,000) a high percentage fee can wipe out a lower rate; on larger loans the fee matters less and the rate dominates.
£150,000 interest-only, 5-year deals
| Product transfer | Remortgage | |
|---|---|---|
| Rate | 5.49%, £0 fee | 4.79%, 3% fee (£4,500) |
| Monthly interest | £686 | £599 |
| Interest over 5 years | £41,175 | £35,925 |
| Fee | £0 | £4,500 |
| Total | £41,175 | £40,425 |
Close, and on a two-year deal the product transfer would win. On a £300,000 loan the remortgage wins clearly. There is no rule; there is only the sum.
Things people forget
- Fees added to the loan cost interest for the whole term. A 3% fee at 5% for 25 years is not 3%.
- Cashback of £250 to £1,000 is common on remortgages and offsets legal costs.
- Early repayment charges on the new deal: check them if you may sell.
- Valuation risk. A remortgage means a new valuation, and if the surveyor's rental figure is lower than yours, the loan can fall. A product transfer avoids this.
A note on the numbers. Rental cover ratios, stress rates, loan-to-value limits and fees are typical of the market at the time of writing (2026) and differ from lender to lender. Tax rules are for individuals and companies resident in the UK and change with each Budget. This is general information, not advice: a broker will tell you what applies to your property, and an accountant what applies to your tax.
Common questions
Can a broker do a product transfer?
Yes, with almost every lender, and they are paid a procuration fee by the lender for it. It also means the broker has checked the transfer against the market first.
Does a product transfer need a credit check?
Usually not, if you are not borrowing more. That is one reason it suits landlords whose circumstances have changed.
Can I borrow more with a product transfer?
Sometimes, as a 'further advance', but it is assessed as new lending with a full affordability test and often at a different rate. A remortgage is usually cleaner for raising money.
Your deal is ending. Let's get a broker on it.
Two minutes of questions about the property. We match you with a buy-to-let specialist who calls you back, usually within one working day. Free, no obligation.