Are you coming to the end of your current fixed rate mortgage deal? If so, and you’re looking for a new mortgage, you might be focused on finding the most affordable option or the best available rate on offer.
 

However, the cost of living crisis has hit wallets and higher mortgage rates are impacting affordability. Many people now face the prospect of moving from mortgages with rates at around 2% to an average rate for a two-year fix of 5.76%.

However, if you are one of these borrowers, you’ll also need to think about another question when picking your next mortgage – whether to stay with your current lender or switch to a new one.

Remortgaging to a different lender could look like an attractive option, especially if they offer flexible terms and incentives like cashback. However, it’s also a good idea to check what products your current lender can offer you too.

A product transfer, also known as a product switch, is when you stay with your lender and move to another mortgage deal when your current one ends. If you have a mortgage with Coventry Building Society, you’d be able to choose from a list of eligible products for our existing members and transfer to a new mortgage. One of the biggest perks of a product transfer is its simplicity, especially if you are choosing the same product type – it’s a straightforward process as we strive to make product transferring with us as easy as possible.

Choosing a product transfer could cost you less than remortgaging too. There are no legal, conveyancing or property valuation fees when you transfer with us, but you may need to pay a product fee. 

Product transfers are a quick way to transfer to a new rate. You can complete one in around 45 minutes by phone and just 15 minutes online with a few clicks on our website. If you’re simply transferring to a new rate, you’ll receive an offer from us as soon as you pick your product. This speed is valuable in a market where interest rates are prone to change. There’s no waiting around for a property valuation or for solicitors, for example.

A product transfer also offers choice. It doesn’t mean you can only swap for the exact same product with a new rate. You can make a change to your mortgage arrangement, including opting for a new term length or Loan to Value (LTV) ratio, or even borrow more. However, if you want to alter your mortgage arrangement, you’ll need to call us to discuss your situation rather than applying online.

If your circumstances have changed, a product transfer may be a sensible option – particularly if you are moving from a lower mortgage rate to a higher one. With a remortgage, you’ll need to start a full mortgage application, but with a product transfer, there’s usually no need for new affordability checks. The option of a product transfer is therefore always available, giving you certainty that you can transfer to another mortgage deal. And during this time, you can relax, knowing you are with a building society which strives to do good for its members, the community and the planet. We put our members at the heart of everything we do.

You might think that to get the best rate you need to search across the mortgage market, but with a product transfer, you can still access great rates.

At Coventry Building Society, we aim for our product transfer rates to always match or be more favourable than the lowest equivalent new business rate. Keeping in mind some of the costs you might need to pay when remortgaging, such as legal fees and valuation charges, a product transfer could end up being more cost-effective, even if the rate is a little higher.

We’ll contact you six months before your mortgage is due to end, giving you time to decide what’s right for you. You can then 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.
 

To learn more about your options and explore some of Coventry Building Society’s range of mortgages, click the button below!