Over the past two years, product transfers have become the default decision for many borrowers. Faced with market volatility, tight deadlines, or affordability uncertainty, locking into a quick internal switch felt sensible. In many cases, it was.
However, in 2026, a growing number of borrowers are discovering that using a product transfer first can complicate their next remortgage far more than expected. What was intended as a temporary pause often becomes a structural obstacle when it comes time to move again.
This is not because product transfers are inherently problematic. It is because they delay scrutiny rather than remove it. When borrowers eventually return to the wider market, lenders reassess the case as if time has stood still—or worse, as if risk has increased.
At Willow Private Finance, we increasingly work with borrowers who assumed a product transfer preserved optionality, only to find that it narrowed their choices. Understanding why this happens is essential if you are approaching the end of a transferred rate in 2026.
The rise of product transfers was driven by practicality. For many borrowers, especially during periods of rate volatility, the ability to switch products without full underwriting provided certainty when certainty was scarce.
Product transfers typically avoided full affordability checks, income verification, and valuation delays. For borrowers whose circumstances had changed since their last full application—such as moving to self-employment, taking on additional commitments, or expanding a property portfolio—this felt like a safe harbour.
In the short term, that logic held. In the medium term, however, the consequences are now becoming clearer.
A product transfer does not reset the clock. It preserves the original loan structure, assumptions, and risk profile from the lender’s perspective. When you later apply to remortgage elsewhere, the new lender assesses you as if no concessions were ever made.
In 2026, this means affordability is tested against today’s criteria, not the environment in which the original mortgage was agreed. If income has not risen in line with revised expenditure assumptions, or if borrowing has increased elsewhere, the gap becomes immediately visible.
For some borrowers, the issue is not deterioration, but stagnation. Income that once comfortably supported borrowing may now fall short once modern stress testing is applied. The product transfer masked this temporarily but did not resolve it.
One of the most common misconceptions is that reducing the mortgage balance through time automatically improves remortgage prospects. While lower LTV helps, affordability remains the gatekeeper.
Borrowers who used a product transfer instead of remortgaging two or three years ago often discover that they would not pass today’s affordability checks with a new lender. Increased assumed living costs, childcare, school fees, or changes in tax treatment can all erode borrowing capacity.
This is particularly relevant for borrowers with variable income. Self-employed individuals, contractors, and directors using dividends often find that lenders assess income more conservatively in 2026 than they did previously.
The result is frustration: equity exists, rates are competitive, but lender doors remain closed.
Remortgaging after a product transfer is rarely urgent—until it suddenly is. Borrowers often delay planning because the transferred rate feels comfortable. That delay can remove strategic options.
In 2026, lenders scrutinise not only affordability but also stability. Applying too soon, before accounts are finalised or income patterns are clear, can lock in an avoidable decline. Applying too late can force borrowers onto higher reversion rates with limited leverage to negotiate.
The most successful outcomes occur when borrowers begin planning at least six months before the product transfer ends. This allows time to assess whether a full remortgage is viable, whether restructuring is required, or whether a second transfer is strategically sensible.
For landlords, the consequences of an earlier product transfer can be amplified. Many portfolio borrowers used internal switches to avoid portfolio underwriting at the time. In 2026, those same borrowers face full portfolio assessment when attempting to move lenders.
As discussed in our analysis of how portfolio size now shapes mortgage outcomes, lenders increasingly assess exposure across the entire portfolio rather than individual properties. A product transfer may have preserved the status quo, but it did not improve the portfolio’s resilience under stress testing.
When the next remortgage is attempted, one weak asset can affect the entire application.
A homeowner uses a product transfer in 2023 after moving to self-employment. Their income stabilises, the mortgage balance reduces, and confidence returns. In 2026, they attempt to remortgage to a new lender for a better rate.
Despite higher earnings, the new lender applies stricter income averaging, higher assumed living costs, and a more conservative stress rate. The application fails affordability—something that would not have happened had the borrower restructured earlier.
With forward planning, the outcome could have been different. Instead, the borrower must now either adjust expectations or restructure under time pressure.
The key is recognising that a product transfer is not neutral. It is a decision with future consequences.
Borrowers approaching the end of a transferred rate should reassess their position early. This includes reviewing affordability under current criteria, stress testing income realistically, and identifying lenders whose assessment methodology aligns with their circumstances.
In some cases, the solution is not a full remortgage but a staged approach: restructuring first, then refinancing later. In others, remaining with the existing lender may still be optimal—but only if the decision is made consciously rather than by default.
Willow Private Finance specialises in remortgage strategy, particularly where borrowers have used product transfers to navigate earlier uncertainty. Our role is to assess whether that decision has created hidden constraints and to map out the smartest route forward.
We work across mainstream, specialist, and private lenders to identify where affordability can be assessed more appropriately and where timing can be used to your advantage. Where a remortgage is not yet viable, we focus on preparing the ground so that it becomes viable later—without unnecessary pressure or cost.
Q1: Does using a product transfer affect my ability to remortgage later?
A: It can. A product transfer avoids underwriting at the time, but future lenders will reassess your affordability using current criteria, which may be stricter.
Q2: Is it harder to remortgage after multiple product transfers?
A: Potentially, yes. Each transfer delays restructuring, which can compound affordability or income-assessment issues when you eventually move lenders.
Q3: Can I remortgage immediately after a product transfer?
A: Usually, yes, but early repayment charges often apply. Strategic timing is essential to avoid unnecessary cost.
Q4: Why would affordability fail now if my income has increased?
A: Lenders may apply more conservative income treatment, higher assumed living costs, or stricter stress testing than when your original mortgage was agreed.
Q5: Are self-employed borrowers more affected by this issue?
A: Often, yes. Income averaging, retained profits, and volatility are assessed more cautiously in 2026 than in previous years.
Q6: What should I do before my transferred rate ends?
A: Review affordability early, stress test realistically, and explore lender options well in advance—ideally six months before expiry.
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About the Author
Wesley Ranger is Director of Willow Private Finance and has over 20 years’ experience advising homeowners, investors, and high-net-worth clients on complex mortgage strategy. He specialises in remortgaging cases involving changing income, tightened affordability, and lender resistance following product transfers. Wesley is known for helping clients regain flexibility through careful timing, lender alignment, and long-term planning rather than short-term fixes.
Important Notice
This article is for general information purposes only and does not constitute personal financial advice. Mortgage criteria, affordability assessments, and lender policies vary and may change at any time. Decisions following a product transfer should be based on a full review of your individual circumstances, objectives, and risk tolerance.
Always seek tailored advice before entering into any mortgage arrangement. Willow Private Finance Ltd is authorised and regulated by the Financial Conduct Authority (FCA No. 588422) and registered in England and Wales.
