Understanding Product Transfers
What Is a Commercial Mortgage Product Transfer?
A commercial mortgage product transfer involves switching your current mortgage to a new product offered by the same lender. It does not involve changing lenders or reapplying for a full commercial mortgage, making it a more straightforward option in many cases.
Borrowers often use product transfers to:
- Move onto a new interest rate deal
- Reduce monthly repayments
- Switch from variable to fixed rates
- Secure more stable mortgage costs
- Avoid remortgage fees or legal costs
- Stay with their existing lender for convenience
Product transfers are typically available at the end of a fixed or discounted rate period, although some lenders may offer early transfer options depending on the product.
Suitable for Existing Borrowers
Who Can Use a Commercial Mortgage Product Transfer?
Commercial mortgage product transfers may be suitable for:
- Business owners with existing commercial mortgages
- Property investors with commercial loans
- Limited companies with commercial property finance
- Borrowers approaching the end of a fixed-rate term
- Clients seeking lower repayments without changing lenders
- Portfolio landlords with existing lender relationships
Eligibility depends on your current lender’s product availability and internal criteria.
Check My Product Transfer Eligibility
Suitable for Existing Borrowers
When Should You Consider a Commercial Mortgage Product Transfer?
A commercial mortgage product transfer is often considered when your current deal is coming to an end or when market rates have changed.
Common situations include:
End of Fixed Rate Period
When your initial deal expires and you move onto a higher standard variable rate.
Lower Monthly Repayments
If a better rate is available with your existing lender.
Simplified Process
If you want to avoid a full remortgage and associated costs.
Market Rate Changes
If commercial mortgage rates have become more competitive since your original deal.
Stability in Payments
If you want to secure fixed repayments for budgeting purposes.
What Do Lenders Consider for Commercial Mortgage Product Transfer?
Product transfer eligibility is usually assessed by your existing lender based on your current mortgage and account history.
Key factors may include:
- Existing repayment history
- Current loan balance
- Property value (updated or estimated)
- Remaining mortgage term
- Available product range with the lender
- Account conduct and credit performance
- Loan-to-value (LTV) position
Unlike a full remortgage, lenders usually do not require a full affordability assessment for product transfers, although criteria may vary.
Why Consider a Product Transfer
Benefits of a Commercial Mortgage Product Transfer
A commercial mortgage product transfer can offer several advantages for borrowers looking to manage existing finance more effectively.
Simple Process
No need to move lenders or complete a full new mortgage application.
Potential Cost Savings
May reduce monthly repayments compared to standard variable rates.
Faster Arrangement
Often quicker than a full commercial remortgage process.
Reduced Legal Costs
Typically no need for full legal work or valuations in many cases.
Flexible Rate Options
Access to new fixed or variable rate products from your current lender.
Understanding Your Options
Product Transfer or Remortgage – What’s the Difference?
When your commercial mortgage term ends, simply renewing with your current lender may not be the most cost-effective path. Many lenders require a property revaluation and charge significant product fees to extend your facility, which can make staying put surprisingly expensive.
As your expiration date approaches, we provide a comprehensive market comparison to protect your bottom line:
- Whole-of-Market Review: We source competitive terms from lenders across the entire industry.
- Direct Cost Comparison: We run the numbers on the total cost of staying with your existing provider versus the savings of switching to a new one.
- Long-Term Savings: Our goal is to identify the specific course of action that minimises your total interest and fee expenditure over the full life of your mortgage.
By assessing your options early, we ensure you aren’t defaulted onto expensive standard variable rates and that your next mortgage product remains a viable asset for your business.
How a Commercial Mortgage Broker Can Help
Even though product transfers stay with your existing lender, reviewing your full market options is still important.
As commercial mortgage brokers, we help clients:
- Check available product transfer options
- Compare them with wider market remortgage deals
- Understand rate differences and cost implications
- Identify better long-term mortgage solutions
- Make informed decisions based on current market conditions
Our aim is to ensure you are not missing more suitable commercial mortgage options.
Check Your Commercial Mortgage Product Transfer Options
Before deciding on a product transfer, you can complete our free commercial mortgage eligibility check.
We review your current mortgage details and assess available lender options to help identify suitable rate products.
Our assessment can help you:
- Understand your current borrowing position
- Review available product transfer options
- Compare remortgage alternatives
- Identify potential savings opportunities
- Save time in the decision-making process
There is no fee for this service and no obligation to proceed.
Check My Eligibility
