A guide to product transfers
There are so many reasons to consider changing your mortgage deal. Whether your fixed-term mortgage is coming to an end, you want to move from a variable rate product, your personal circumstances have changed, or your home’s value has increased, finding a mortgage deal to match your needs is important.
Before switching your mortgage deal, you should also consider which of the following options suits you best:
- Staying with your current lender but switching to a new mortgage deal through a product transfer
- Looking at other lenders to find a new rate by remortgaging
- Staying with your current lender and moving onto the higher Standard Variable Rate (SVR) if your fixed term is coming to an end
If you’re a Coventry Building Society member and are considering transferring your mortgage but aren’t sure of the best way to do this, you can get in touch with us directly or alternatively, contact your broker. To help you, we’ve put together this step-by-step guide which will explain what a product transfer is, who it’s suitable for, and how you can request to transfer your existing mortgage over to a new product with us.
What is a product transfer?
A product transfer allows you to transfer your existing mortgage deal to a new deal with the same lender. This means you don’t have to shop around the market to find a new mortgage deal with another provider if you are happy with the terms offered by your existing lender.
When you come to the end of your fixed-term mortgage product, you’ll be moved onto the lender’s SVR, which may mean your monthly repayments could rise considerably.
When can I transfer?
We’ll contact you four months before your mortgage is due to end, giving you time to decide what’s right for you. You can sign up for a new mortgage product four months before your current deal ends, and we’ll give you the flexibility to change your mind if your circumstances, or the market changes.
It's a good idea to check if your mortgage has multiple parts to it, as these may come to an end at different times. They may also have different requirements, such as an early repayment charge. If you’re unsure, our mortgage team is here to help you. Simply call us on 0800 121 8899.
Why choose a product transfer?
If you have a mortgage with Coventry Building Society, you’ll be able to choose one of our existing member products where you’ll be offered rates that are as good as or better than the equivalent products offered to new members. Product transfers are a popular choice with homeowners because they are often simpler and faster than a remortgage.
Let’s explore this:
Speed and simplicity
One of the biggest perks of a product transfer is its simplicity, especially if you are switching to a new rate and not changing your mortgage term or the amount you have borrowed. It’s a straightforward process as we strive to make product transferring with us as easy as possible.
The application process is made much simpler because Coventry Building Society has already assessed your home and financial circumstances, so you don’t need to worry about waiting around for solicitors or a property valuation – something that may be required when switching to a new lender.
If you choose to keep the same type of mortgage, you can continue borrowing on the same terms as your original deal but with a new rate. This means you won’t have to undergo further affordability checks, such as supplying proof of income, which makes the process very straightforward and much quicker than remortgaging. You can sign any documents electronically, meaning you can normally complete the process online in as little as 15 minutes. However, if you want to change the term length or borrow more money, for example, you may need to undergo some extra checks.
Remortgaging works differently. You’ll follow a similar process to your original mortgage application and often need to share personal information and paperwork, such as payslips. This process can take several weeks or even months to complete.
Cost
Remortgaging may involve several different fees, depending on the lender and mortgage deal. These might include legal and property valuation charges alongside a product fee (on average £1,112)*. These costs can easily add up, so once you’ve found a mortgage with a lower rate, be sure to compare it with other products that have a higher rate – but with lower or no product fees – as you could end up spending more. There is also the option to add the product fee to your mortgage rather than paying it upfront. Just remember you’ll be charged interest on the additional amount. For further support on this, you can contact one of our expert advisers or speak to your broker.
At Coventry Building Society, some of our mortgages include a product fee and others are fee free. Whichever option you choose, you can be sure that we won’t charge legal, conveyancing or valuation fees with a product transfer.
*Mortgage Fees Explained – Forbes Advisor UK
Flexibility to make changes
Our product transfer process
Applying online
If you simply want to transfer to a new rate with us or change your product type, for example from a five year fixed to a two year fixed, and you’re happy to proceed without advice, you can apply for a product transfer online. You can do this up to four months before your current deal ends.
To get started, we’ll need a few key details from you including your full name, date of birth, mortgage account number, and your postcode – either for your home address if you’re applying for a residential mortgage or for the mortgaged property for a Buy to Let product. Once you’ve submitted this information, we’ll let you know which mortgage accounts or sub-accounts you can transfer. When you’re ready, we’ll give you a list of the current mortgages available which you can filter by product type and length.
After choosing the mortgage you want, we’ll let you know if there are any additional charges you need to be aware of, such as a product fee. If your choice of mortgage includes this charge, you’ll have the option to either pay this straight away or to add it to your loan. While adding a fee to the loan can be a helpful option to free up some of your cash reserves, remember that interest will be applied to the product fee amount at the same rate as your mortgage loan.
And that’s it. By following these steps, you can see how straightforward the product transfer process is.
Our monthly cut-off dates for mortgage transfers
Getting advice on your product transfer
We understand you might want to speak to our team of experts to find the right mortgage product for you. Our friendly team are on hand to guide you through the process and answer any questions you may have. To apply for a product transfer over the phone, It’ll take around 45 minutes for a simple rate change, and a bit longer for anything else. Alternatively, you can speak to your broker.
We’re here to help if you want to make a change when you transfer with us. You don’t have to stick with a like-for-like product when transferring – you can apply to borrow more or make changes to your term. All you’ll need to do is speak to one of our team members and we may need to carry out some additional checks such as proof of income. This may mean the process takes slightly longer.
If you’re looking to repay some of your mortgage, you can choose to make a repayment when you transfer to avoid any early repayment charges later on. We will provide a personalised illustration to you to let you know how your decision changes your monthly repayments.
Our team are also on hand to help you make changes to your mortgage term. We will guide you through the process and let you know what changing your mortgage term will mean for you. You can get help with other criteria too, such as a payment holiday.
Here to help
At Coventry Building Society, we know how important it is to get the right mortgage product to suit your needs. Product transfers can fast-track the process, offering a simpler and hassle-free way to secure a new deal compared to switching lenders. It could even help you save on additional costs such as valuation fees.
We also know that choosing a mortgage can seem like a daunting prospect. As a responsible lender, and a building society that cares about its members, we’ll help you find the right product and take away that stress.
Our customer service is what sets us apart, saving our members both time and effort. If you’re worried about your finances or if you’ve been affected by interest rate increases, we’re also here to help.
Want help?
Our help section is bursting with useful information. If you'd rather chat, just give us a call.
Call us on 0800 121 8899
- Mon-Fri 8am-7pm
- Saturday 9am-2pm
- Sunday & Bank holidays Closed
Yesterday, people waited on average
17 seconds for savings enquiries
17 seconds for mortgage enquiries
Want help?
Our help section is bursting with useful information. If you'd rather chat, just give us a call.
Call us on
0800 121 8899
Saturday
Sunday
9am - 2pm
Closed
Closed
Closed
8am - 2pm
On Saturday, people waited on average
25 seconds for savings enquiries
6 seconds for mortgage enquiries