Product transfers are a hugely important part of the mortgage market.
In the first quarter of this year they accounted for £39.2bn, a 2.1% increase on the same period a year earlier, according to UK Finance.
Brokers are increasingly embracing product transfers, as lenders’ switching processes have become more intermediary-friendly and more pay a proc fee.
At Halifax we’ve long paid the same on product transfers as on remortgage business, and we’ve streamlined our process so you can move straight to offer on certain cases.
Now we’ve made the product transfer more flexible for you and your client, to give you greater control over when the rate switch takes place.
You can key in a product transfer request for your client on Halifax Online within three months of the end date of their existing product.
We used to tell you when the switching date would be – usually the first of the following month – but now you and your client will be given two options.
This means they have the choice over when their new product starts – sooner or later, depending on their preference.
They can choose the product transfer to happen before their original product end date, and any Early Repayment Charges (ERCs) are waived.
Or they can wait until the end date of their existing product, but secure the new rate today.
If you request a product transfer during the final month of your client’s existing product, the switch will still happen on the first of the following month, so they don’t revert to SVR.
And if they’re already paying SVR it will simply take effect from the first of the following month.
Why we have made this change
Last year, we made our product transfer process quicker and easier for you to use, and we already pay a fair, equal fee because we appreciate the amount of work you put in to product transfers.
This change now gives you and your client more control and flexibility over their switching date.
That’s because we recognise that, if they are coming off a higher rate onto a lower rate, they may prefer to switch as soon as possible to take advantage of their new lower monthly repayments. And, of course, we’ll waive any ERCs within the final three months of their existing deal.
But, if your client was on a particularly low rate and they are switching to a higher one, they’re likely to prefer to stay on their existing deal until the final day, to maximise their savings. Now they can secure the new rate up to three months in advance for peace of mind.
Of course, their individual circumstances will guide your client’s decision, along with your advice.
What you need to do
You don’t need to take action or change the way you apply for a product transfer.
The process on Halifax Intermediaries Online remains the same, but now you will be shown two start dates for you and your client to choose from.
Just choose the date they prefer and the switch will take place automatically once the offer has been issued.
We know you work hard to find the right mortgage for your client, whether that is a new deal with a different lender or a product transfer with their existing lender.
If you and your client decide to stay with Halifax and switch deal, we’re committed to making that process as easy, flexible and hassle-free as possible.
For the use of mortgage intermediaries and other professionals only
If you do not have professional experience, you should not rely on the information contained in this communication. If you are a professional and you reproduce any part of the information contained in this communication, to be used with or to advise retail clients, you must ensure it conforms to the Financial Conduct Authority’s advising and selling rules. Halifax is a division of Bank of Scotland plc. Registered in Scotland No. SC327000. Registered Office: The Mound, Edinburgh EH1 1YZ. Bank of Scotland plc is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority under registration number 169628. This information is correct as of September 2019 and is relevant to Halifax products and services only.