Is it worth letting your broker do your product transfer, or should you speak to your lender directly? Our latest article examines the benefits of having your broker handle the process for you.
For many landlords coming to the end of their fixed mortgage term, the ease of a product transfer can be much more attractive than a standard remortgage. In the current market climate, with tighter affordability calculations and rising interest rates, many will look for the most straightforward process.
However, as a product transfer simply involves refixing onto a new rate from your existing lender, should your broker do this for you, or is it better to go to your lender directly?
Do you need a broker to do your Product Transfer for you?
It depends on the lender. In some cases, you can go directly to your lender to request a product transfer rate. However, other lenders won’t deal directly with borrowers meaning you have to use a broker to access the rates. Furthermore, plenty of other benefits come from using a broker for this process that are worth considering.
A simple and easy process
One main benefit of letting your broker do your product transfer for you is that it makes the process much easier for you. With the ongoing market uncertainty, trusting an experienced broker to handle your property finance needs gives you more time to focus on managing your property investments (and other things you enjoy doing besides admin!).
Working closely with an experienced broker means you have access to invaluable and tailored advice to help support you through your mortgage application. When it comes to assessing your product transfer option, your broker will be able to discuss the benefits and drawbacks of fixed or variable deals and whether a two- or five-year fixed rate will be the most cost-effective for you. Your broker has a comprehensive understanding of the mortgage market and will be able to give you the guidance you need to make the best property investment decision for your circumstance.
Access the best deal possible!
An added benefit is that your broker can look at all products on the market to assess your best option, whether that means a remortgage or a product transfer. This will give you more security in knowing you have found the best deal for your circumstances. It’s worth noting that, now more than ever, the best deal doesn’t necessarily mean the cheapest. Your broker will be able to discuss your options with you to help you make the most informed property investment decisions.
Fix onto the best rate months in advance
If the recent market volatility we’ve seen over the past eighteen months has shown us anything, it’s that mortgage interest rates can fluctuate unexpectedly. The Truss-Kwarteng mini-budget and US inflation levels are prime examples of how unforeseen circumstances can have a massive impact on the mortgage market.
As such, for landlords wanting to find more security in their property investments, a broker can help you secure a new product transfer rate up to six months before your current deal ends. This allows you to mitigate further market changes or interest rate rises.
Confidence in your property investment decisions
A key benefit of having your broker handle the product transfer process for you is that they can easily change your rate for you if a better one becomes available. If mortgage interest rates go down or a more suitable product becomes available, most lenders will allow you to transfer over to a new rate before your new deal starts. This is fantastic for landlords looking for security in their property investments, while still offering some flexibility. It also not only reinforces the importance of keeping in touch with your broker, but highlights how building a strong, communicative relationship can only positively impact your property investment journey.
It's also worth noting that as an MFB client, we will automatically notify you when you approach the end of your fixed deal. Our ERC process means we will contact you to let you know when it's time to start looking at your remortgage or product transfer options, allowing you to have a hassle-free process.
While we may be (a little) biased, you can see there are plenty of benefits to letting your broker handle your mortgage application processes for you. Whether for a product transfer or a new investment property purchase, dealing with an expert broker gives you access to invaluable advice and support with your property finance journey.
Read our Introduction to Mortgage Product Transfers to learn more about how product transfers work, and their benefits and limitations.
12th July 2023