Mortgage Product Transfers – The ‘Best Solution’ or the ‘Easy Option’

Monday, May 22nd, 2023

A recent study by UK Finance revealed that around eighty seven percent of mortgage holders chose to stay with their existing mortgage lender when their product ended, an increasing trend that has seen this figure rise from seventy three percent in 2019 and then to eighty percent in 2021. **

Why Are Mortgage Transfers a Popular Option? 

This is a trend that has also been seen by Caboodle Finance when dealing with its existing customers and although there could be many reasons a product transfer is the best or most suitable solution for each individual set of circumstances, the customer sentiment of a mortgage product transfer being “less hassle” is certainly a factor.

One of the appealing factors for many borrowers is that as part of the mortgage product transfer process for an existing customer, a mortgage lender will not usually perform any new underwriting, affordability, or criteria checks or even require any documentation such as proof of current income or bank statements. 

Your Mortgage Broker – Always Acting in Your Best Interests

However, a mortgage broker has a duty to act in the customer’s best interests, so unless the customer specifically indicates they only wish to consider products from their existing mortgage provider, a full assessment of their circumstances and requirements should be undertaken so that products from across a comprehensive panel of mortgage providers can be researched and a comparison done with those available via the existing mortgage lender.

Compare Mortgage Products

Whilst some mortgage advisers will not take the customer through a full assessment in every instance to ensure that the most suitable solution can be recommended, our specialists do conduct additional checks to research a comprehensive panel of mortgage lenders across the UK to ensure our clients always get a tailored recommendation based on their specific circumstances and requirements.

That said, with mortgage transactions remaining low, many lenders have recently adopted an aggressive attitude toward retaining their existing customers by offering competitive deals which are comparable to any new business rates that may be available. In addition, even when a transfer would result in financial gain, a customer may still insist on staying with the current provider to avoid having to complete an application with a new lender.

Let Us Help You Transfer Your Mortgage Product Hassle-Free

In conclusion, whether you are coming to the end of your current fixed rate and are not sure what to do or would just like to discuss your individual circumstances and requirements, please call 0121 308 9114 and speak with one of our mortgage team here at Caboodle Financial Services of Sutton Coldfield, Birmingham to receive some personalised no-obligation mortgage advice. Alternatively, complete our online form HERE and we will be in touch.

We look forward to hearing from you.

** Source – Mortgage Strategy 18-04-23

The information contained above was correct at the time of publication but is subject to change.

YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR ANY OTHER DEBT SECURED ON IT.

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THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST YOUR HOME. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR ANY OTHER DEBT SECURED ON IT. CONSOLIDATING DEBTS MAY INCREASE THE TERM AND TOTAL AMOUNT PAYABLE.

Your initial consultation is free and you are under no obligation to proceed with a mortgage we recommend. There will be a fee for our mortgage advice which will range from £495 to £1,495. The level of fee will be determined by the amount of work we expect to undertake in arranging your mortgage and we will discuss and agree this with you before you make an application. Please ask for a personalised illustration.

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Caboodle Financial Services Ltd, registered in England and Wales at Mere Green House, 46-48 Mere Green Road, Sutton Coldfield, West Midlands B75 5BT (number 08044670).
Caboodle Financial Services Ltd is an appointed representative of PRIMIS Mortgage Network (PRIMIS), a trading name of Advance Mortgage Funding Ltd which is authorised and regulated by the Financial Conduct Authority. PRIMIS is only responsible for the service and quality of advice provided to you in relation to mortgages, protection insurance and general insurance products. Any other product or service offered by Caboodle Financial Services Ltd may not be the responsibility of PRIMIS and may also not be subject to regulation by the Financial Conduct Authority. The Financial Conduct Authority does not regulate some forms of Buy to Let.

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