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Remortgage or product transfer?

by: Ian Wilson, head of Halifax Intermediaries
  • 12/10/2018
  • 0
The right route to a new deal depends on each and every client.



Not long ago a remortgage was a no brainer for most clients coming to the end of a product period.

That has changed, as some homeowners find themselves with little or no equity, restricting their switching options.

The tightening of lending criteria may have also moved the goalposts for some clients; they may have slipped out of mainstream lending criteria, perhaps because of a change in income, employment status or financial commitments.

A product transfer could now be an option for these and other borrowers, and with Halifax Intermediaries paying the same procuration fee as on new business, you get the same recognition for your advice and hard work.

When to consider a product transfer?


The hard-to-place client: If you have a client that’s tricky to place, look at all the options – mainstream market, specialist sector and product transfers.

If their remortgage options are limited but they can easily and quickly access another mainstream rate with their existing lender, why not consider a product transfer? Unless you can find them a better deal elsewhere it has to be worth exploring.

The reluctant remortgagor: Your client wants to avoid a lengthy process of form-filling, phone calls and delays and has told you they don’t want to remortgage if it’s going to be a hassle. A product transfer could be easier so, if their existing lender has competitive deals and the numbers stack up, you can help them to switch on their terms.

The time-pressed client: Perhaps your client needs the deal to go through as quickly as possible. They may want to avoid moving onto a higher SVR, or perhaps they are looking for a further advance and are in a rush to get the funds. Chances are that staying with their existing lender could be the quickest option for them.

Ready for a remortgage


Of course, many of your clients will still be better taking the remortgage route.

Perhaps they are keen to find the cheapest deal available and want you to search the whole market on their behalf. They don’t mind the extra form filling to achieve the savings they want and are in no rush to complete.

The many clients with good levels of equity and a strong financial position will be able to access a vast choice of competitive deals – over 5,000 according to Moneyfacts – so they will understandably want to find the best of those – which may or may not be with their current lender.

Intermediary opportunity


As with every case, you simply do the right thing for your clients – whether that’s remortgaging or a product transfer.

At least you now get paid a procuration fee with many lenders and with Halifax Intermediaries you’ll get paid exactly the same either way.

A product transfer may be an alternative option to a remortgage and could free up your time to work with other clients. With lenders currently investing in better technology for intermediary product transfers, the process can be done easily online with some.

By being open to both options, you can ensure they get the right advice, the right products and the best service.

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