Remortgage vs product transfer calculator

When your deal ends you can take a new deal with your lender, switch lender, or do nothing. This compares the total cost of each over the same period, fees included.

How it's calculated

For each option the calculator works out the monthly payment on a repayment mortgage over your remaining term, runs the balance forward month by month to the end of the new deal, and adds up the cost of that period:

Cost over the deal = fees paid upfront + all monthly payments + the balance left at the end − the balance today.

That is the interest plus fees, and it treats every option fairly even when a fee is added to the loan: the extra borrowing shows up in a higher balance at the end. The standard variable rate line assumes the rate stays where it is for the whole period, which it may not.

Product transfer or remortgage: the differences

	Product transfer	Remortgage to a new lender
Who	Your current lender	Any lender that will take you
Affordability check	Often none, if you don't borrow more	Full application, credit search and income evidence
Valuation and legal work	Usually none	Usually needed, often free on standard remortgage deals
Speed	Days	Typically 4–8 weeks
Rates	Only your lender's range	The whole market, sometimes cheaper
Borrowing more	Possible, with a fresh check	Possible, with a full check

This comes from FCA rules: your existing lender doesn't have to re-assess affordability for a replacement deal if you don't borrow more than you owe (adding the new deal's product fee is allowed) and nothing else changes that is likely to matter to affordability (FCA Handbook, MCOB 11.6.3R). That matters if your income has fallen or your credit file has taken a knock since you last borrowed: a product transfer may be your only realistic option.

Worked examples: £200,000 over 20 years, standard variable rate 7.5%

Deal	Product transfer 4.6%	New lender 4.2%	Standard variable rate	Cheaper
2 years, £999 fee on both	£18,845 (£1,276 a month)	£17,271 (£1,233 a month)	£29,347 (£1,611 a month)	New lender by £1,574
2 years, no fee on the transfer	£17,846	£17,271	£29,347	New lender by £575
5 years, no fee on the transfer	£42,273	£39,461	£70,475	New lender by £2,812
2 years, £80,000 over 10 years, no fee on the transfer	£6,787	£7,186	£11,188	Transfer by £399

A 0.4-point lower rate beats a £999 fee on a large balance, but not on a small one: with £80,000 left the same rate gap saves less in interest than the fee costs. The bigger lesson is in the last column: drifting onto the standard variable rate costs £10,500–£12,000 more over two years than either deal on the £200,000 mortgage.

Fees: pay upfront or add to the loan?

Adding a fee to the mortgage means paying interest on it for the rest of the term, and it can push you into a higher loan-to-value band. On the first example, adding the £999 fee raises the two-year cost of each option by £80–£90 and leaves about £935 more owed at the end of the deal. Tick the box above to compare.

When to start

Lenders usually offer product transfers three to six months before the deal ends, and a remortgage offer is typically valid for about six months, so you can secure a rate early and still switch if a better one appears. Check when your early repayment charge ends: switching before then can cost 1–5% of the balance, which wipes out most rate savings. See the remortgage guide for the full timeline.

Common questions

Can a broker arrange a product transfer?

Many can, and a broker can compare your lender's transfer rates with the rest of the market in one go. At the start the broker must tell you which lenders it can access and what it charges (MCOB 4.4A).

Does a product transfer affect my credit score?

Usually not much: many lenders don't run a hard search for a like-for-like switch. A remortgage application to a new lender involves a hard search.

What about buy-to-let?

The same comparison works. A buy-to-let remortgage with no extra borrowing is also outside the PRA's rental stress test rules; see the buy-to-let stress test calculator.

Sources checked 15 October 2026.

Other calculators

Estimates only, not advice. These calculators do arithmetic on the numbers you enter. They don't check your credit file, apply a lender's affordability rules or know which products you qualify for. Nothing you type is stored or sent anywhere. For a figure you can act on, speak to an FCA-authorised mortgage adviser.