Homeowners approaching the end of a fixed mortgage currently face an unusual-looking comparison. Rightmove’s latest data show average product-transfer rates below average remortgage rates for both two-year and five-year fixes. Staying with the existing lender may therefore look cheaper—but the correct decision still depends on what the mortgage needs to achieve.
Rightmove’s figures updated on 26 September put the average two-year fixed remortgage rate at 5.51%, compared with 5.15% for a two-year product transfer. The average five-year figures were 5.52% and 5.21% respectively.
The lowest listed rates showed the same direction: 4.94% for a two-year remortgage against 4.69% for a product transfer, and 5.02% for a five-year remortgage against 4.78% for a product transfer. That is useful market evidence, but it is not a conclusion for every homeowner. The figures span loan-to-value bands from 60% to 95%, and Rightmove notes that some lenders’ product-transfer rates are not publicly available.
Rightmove’s Remortgage Comparison — 26 September 2026
Two-year fixed remortgage: 5.51% average and 4.94% lowest listed rate.
Two-year fixed product transfer: 5.15% average and 4.69% lowest listed rate.
Five-year fixed remortgage: 5.52% average and 5.02% lowest listed rate.
Five-year fixed product transfer: 5.21% average and 4.78% lowest listed rate.
Why a Product Transfer Can Be the Right Answer
A product transfer is a switch to a new deal with the same lender. Where the mortgage balance, borrowers and repayment structure remain unchanged, it can be materially simpler than moving lender. There may be no new valuation, conveyancing or full affordability assessment, and the lender already holds the mortgage.
That simplicity is valuable where income has fallen, employment has changed, credit history has weakened or the borrower no longer fits wider-market affordability tests. If the existing lender offers a suitable rate without reopening the complete underwriting position, staying can provide certainty that a new application cannot.
A transfer may also be reservable several months before the current deal ends. Some lenders allow borrowers to move to a cheaper product if rates fall before completion, although the deadline and cancellation rules differ. Securing an acceptable fallback can protect against an unnecessary move onto the lender’s standard variable rate while the wider market is reviewed.
The Average Rate Gap Does Not Equal Your Personal Saving
Rightmove’s headline averages combine several loan-to-value bands. A homeowner at 60% LTV is not choosing from the same range as somebody at 90% or 95%. The actual existing-lender offer could sit above or below the reported product-transfer average, while a suitable remortgage could be materially different from the market average.
The lowest rates are also not available to everyone. Eligibility can depend on equity, property, income, credit record, loan size and product fee. A low-rate product with a £999 or larger fee may cost more over the fixed period than a slightly higher rate with a lower fee, particularly on a modest balance.
For illustration, on a £250,000 repayment mortgage over 25 years, the difference between 5.51% and 5.15% is roughly £53 a month. That is meaningful, but it does not automatically outweigh fees, cashback, free legal work, valuation costs or a more suitable borrowing structure. The personalised comparison must use the actual balance, term and products available.
Compare the Mortgage in Pounds, Not Just Percentages
For each credible option, calculate the monthly payment, product fee, valuation and legal costs, cashback, broker fee where applicable, early-repayment charge, balance expected at the end of the deal and any cost of moving onto the standard variable rate. Then test whether the mortgage provides the borrowing and flexibility required.
A Cheaper Rate Cannot Solve the Wrong Mortgage
The existing lender’s product transfer may be cheapest if the borrower simply wants to keep the same balance, term and repayment basis. The question changes when the mortgage must do more. A household may need additional borrowing for improvements, want to consolidate expensive commitments, extend or shorten the term, remove a party, add a borrower or change from repayment to interest-only.
The existing lender may offer some of those changes through a further advance or separate underwriting process. But the result can be a split mortgage with different rates, end dates and early-repayment charges. Another lender may offer one coherent facility, better affordability treatment or criteria that fit the borrower’s current circumstances more closely.
The lowest immediate rate can therefore produce a less useful long-term structure. If a product transfer leaves the homeowner unable to release required capital or locks the main balance into an ERC period that conflicts with an intended move, its apparent saving may be misleading.
| Borrower Objective | Why a Product Transfer May Fit | Why a Remortgage May Need Comparing |
|---|---|---|
| Replace an ending fixed rate | Fast, simple and may avoid full underwriting. | A new lender may offer a lower total cost or more suitable features. |
| Borrow more | The current lender may offer a further advance. | Another lender may combine the complete balance on better terms or lend more. |
| Change the mortgage term | A simple term amendment may be available. | Different lenders can assess affordability and maximum age differently. |
| Move to interest-only | Possible where the current lender accepts the repayment strategy. | Specialist or HNW lenders may accept different income, assets or repayment vehicles. |
| Restructure debt | A further advance may avoid disturbing the main loan. | A complete remortgage may produce a clearer facility, subject to advice and total-cost analysis. |
Additional Borrowing Can Change the Comparison Completely
A borrower who wants £50,000 for home improvements is not comparing only the rate on the existing balance. They need to compare the current lender’s product transfer plus further advance with a new lender willing to refinance the whole amount.
The further advance may sit on a different fixed period and rate from the main mortgage. If those end dates remain misaligned, the borrower may repeatedly face a decision where one part is free to move and another is subject to an early-repayment charge. That can reduce future access to the whole market.
A new lender may offer one rate and one maturity date, but moving requires full affordability, valuation and legal work. The correct comparison should show the cost of both parts under the existing-lender route against the complete new-lender facility, including fees and the future flexibility created or lost.
Income Criteria Can Be More Important Than Headline Pricing
Borrowers do not always reach the end of a fixed rate in the same circumstances in which they started it. They may now be self-employed, receive bonuses or commission, have become a contractor, be approaching retirement, draw pension income or hold substantial assets alongside income that looks modest on a conventional affordability model.
A product transfer can be valuable because a simple rate switch may not require those circumstances to be reassessed. Equally, the existing lender’s original criteria may no longer support the capital, term or repayment structure the client now needs. Another lender may treat the income more favourably or take a broader view of assets and future affordability.
This is one reason a whole-of-market review should not begin with the assumption that moving is always better. Sometimes the existing lender provides the only sensible low-friction route. Sometimes wider criteria create a materially better outcome even when the new-lender rate is slightly higher.
Interest-Only Borrowers Need More Than a Rate Comparison
An interest-only mortgage approaching renewal raises questions about the repayment strategy, remaining term and how the lender treats property, investments, pensions, bonuses or other assets. An existing-lender transfer may preserve the arrangement without reopening every issue, depending on the lender’s rules.
A remortgage can be useful where the borrower wants a longer term, a different repayment vehicle, part-and-part borrowing or capital release. HNW and specialist lenders may accept repayment strategies that do not fit standard high-street policy, but can require more evidence and may price differently.
The cheapest two-year rate is not automatically suitable if the borrower reaches the end of that period with the same unresolved capital balance and fewer refinancing options. The review should test the complete route to repayment, not only the next monthly payment.
Early-Repayment Charges and Timing Can Erase a Saving
Moving to another lender before the current fixed period ends can trigger an early-repayment charge. Even a materially lower new rate may not recover that cost. The remortgage should normally be timed to complete when the existing deal ends unless there is a clear financial or strategic reason to leave earlier.
Starting the review around six months ahead creates time to reserve an existing-lender option, obtain a new-lender decision and coordinate legal completion. It also gives the adviser time to monitor rates and reconsider the recommendation if the market moves.
Borrowers should confirm whether a reserved product transfer can be cancelled or replaced before it takes effect. Rules vary. A fallback is useful only if the client understands the deadline for changing course and does not accidentally activate a new ERC period before the remortgage completes.
Fees Matter More on Smaller Mortgage Balances
A £999 fee spread across a £500,000 mortgage has a different proportional effect from the same fee on a £75,000 balance. On smaller loans, a fee-free product with a higher rate can deliver a lower total cost over two or five years.
The calculation should include how the fee is paid. Adding it to the mortgage preserves cash but means interest is charged on the fee. Paying it upfront avoids that interest but creates an immediate cost that must be recovered through the rate saving.
Free valuation, free legal work and cashback can reduce the cost of a remortgage, but restrictions matter. Leasehold supplements, complex legal work or properties outside standard valuation parameters can create additional charges. The advertised incentive is not always the final transaction cost.
The Product-Transfer Decision in One Sentence
If the existing mortgage still fits and the transfer offers the lowest suitable total cost, staying may be right. If the borrower needs different capital, criteria, repayment terms or flexibility, the wider market deserves comparison even when its average rate is higher.
A Proper Review Should Produce Three Answers
First, what is the strongest product transfer actually available from the existing lender? This should include its rate, fee, term, ERC and the deadline for reservation or cancellation.
Second, what suitable remortgage options are available across the market after the borrower’s real income, property, credit, loan-to-value and objectives are assessed? Market averages are context, not sourcing results.
Third, what happens if the borrower delays or does nothing? The cost of the standard variable rate, any time needed for underwriting and the risk of a payment gap should be visible. A recommendation is only meaningful when all three paths are compared on the same basis.
How Willow Private Finance Can Help
Willow compares the existing lender’s product-transfer options with suitable remortgages across the wider market. We assess the total cost over the chosen period, not just the initial rate, and include fees, incentives, legal and valuation costs, early-repayment charges and the expected mortgage balance.
We also establish whether the client needs additional borrowing, a different term, interest-only or part-and-part repayment, debt restructuring, a change of borrower or more flexible income criteria. Those requirements often determine the lender before the rate comparison begins.
The outcome may be a recommendation to stay with the current lender. Whole-of-market advice is not valuable only when it produces a new mortgage application. Its purpose is to identify the most suitable route after the realistic options have been compared impartially.
Your Existing Lender Looks Cheaper. Is It Actually the Better Mortgage?
Willow can compare the product transfer with suitable remortgages using your real balance, equity, term, fees, borrowing needs and future plans.
If staying is the right answer, we will say so. If another lender creates a better overall structure, we will show why the difference matters.
Arrange a Free Mortgage Review →Frequently Asked Questions
How to compare an existing-lender product transfer with a whole-of-market remortgage.
What is the difference between a product transfer and a remortgage?
A product transfer moves an existing mortgage onto another deal with the same lender. A remortgage replaces the mortgage with a new loan from a different lender. A product transfer is usually simpler, while a remortgage can provide access to different criteria, features and borrowing options.
Are product-transfer rates always cheaper than remortgage rates?
No. Rightmove’s 26 September averages were lower for product transfers, but rates vary by lender, loan-to-value, fee, term and borrower. Some product-transfer rates are not publicly available, and the lowest suitable remortgage may still beat the borrower’s actual existing-lender offer.
Will a product transfer require affordability checks?
A straightforward product transfer with no additional borrowing will often avoid a full affordability assessment, valuation and legal process. Requirements can change if the borrower wants more money, alters the parties or makes other material changes.
When might remortgaging be better despite a higher rate?
It may be better where a new lender supports additional borrowing, a different term, interest-only repayment, debt restructuring, a more favourable income assessment or a feature the existing lender cannot provide. The total cost and suitability must be compared.
How early should borrowers review a mortgage that is ending?
A review commonly starts around six months before the fixed period ends. That creates time to compare the existing lender with the wider market, complete any new-lender underwriting and avoid an unnecessary move onto the standard variable rate.