Landlord renewal coming up? Learn the real difference between a remortgage and a product transfer, when each makes sense, and the traps to avoid.
The landlord renewal decision most people rush
When a landlord mortgage deal is ending, you’ll usually have two broad routes:
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Product transfer (sometimes called a “rate switch”) with your current lender
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Remortgage to a new lender
A lot of landlords default to whichever feels easiest. But the “easy” route isn’t always the best route — especially if your situation has changed since you last applied, or your next move requires flexibility.
This guide breaks down how each route works, what landlords commonly miss, and a practical way to make the decision with confidence.
What is a product transfer?
A product transfer is where you switch to a new product with your existing lender. Often:
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paperwork is lighter,
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the process is quicker,
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and you avoid some of the full underwriting you’d face with a new lender.
Product transfers can be a great tool for landlords — particularly when speed and simplicity are priorities.
But they can also become a “silent cost” if you accept them without checking the opportunity cost.
What is a remortgage?
A remortgage is where you move the mortgage to a new lender.
This can:
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open up wider product choice,
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potentially improve terms,
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allow capital raising,
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or create better flexibility for future plans.
But it can also mean:
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more documentation,
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valuation/underwriting steps,
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and longer timelines.
The landlord decision framework: 8 questions that settle it
1) Has your situation changed since the last application?
A product transfer may avoid deeper scrutiny. So if your current lender’s offer is competitive and your circumstances have become more complex (income, commitments, structure), a transfer can sometimes reduce friction.
But don’t use this as a reason to accept poor terms — use it as a factor in the decision.
2) Do you need to raise capital?
If you want to raise funds — for a purchase, refurb, EPC works, or a buffer — a product transfer may not achieve what you want (or may be limited).
Capital raising often points towards a remortgage route, but it needs to be planned properly and stress-tested.
3) Do you need flexibility in the next 12–24 months?
This is where landlords often lose money without noticing.
Ask yourself:
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Will you be buying again soon?
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Might you want to sell a property?
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Are you planning improvements or a change of use?
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Do you need to keep options open?
Then check product features like:
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early repayment charges (ERCs),
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portability,
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overpayment allowances,
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fees and tie-ins.
A slightly better rate isn’t always better if the product restricts your next move.
4) Is the property “simple” or does it have flags?
Properties that can create extra lender questions include:
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short leases,
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HMOs/licensing complexity,
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non-standard construction,
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flats above commercial,
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unusual layouts,
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multi-unit buildings.
A product transfer can reduce the amount of new scrutiny. That can be a benefit — but it’s not always the best long-term answer if the lender’s options are narrow.
5) Are you happy with the current lender’s valuation view?
Some landlords plan based on an assumed valuation, then get stuck when the valuation lands differently.
If you strongly suspect your property could down-value, it can influence whether you:
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keep things simple with a transfer, or
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remortgage and accept the valuation process risk.
Either way, it’s better to think about valuation risk up front than be surprised mid-process.
6) Are fees outweighing the rate difference?
Landlords sometimes chase a tiny rate improvement that’s wiped out by:
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arrangement fees,
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legal fees,
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valuation costs,
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and admin time.
A good comparison looks at the total cost over the fixed period, not just the headline rate.
7) How much time do you have before renewal?
If you leave it late, the choice becomes “what can complete in time”, not “what is best”.
A product transfer can be fast and useful when time is tight.
A remortgage generally needs more runway to stay calm.
8) What’s your actual strategy this cycle?
This one question prevents most bad renewals:
Are you trying to:
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optimise cashflow,
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de-risk and fix for certainty,
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raise funds for the next move,
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or restructure your borrowing more intelligently?
A product transfer is often great for “keep stable, keep simple.”
A remortgage is often better for “change something and improve flexibility.”
Common landlord traps (and how to avoid them)
Trap 1: “The lender offered it, so it must be good.”
Transfers are convenient — not automatically competitive.
Trap 2: Comparing rate vs rate only
Look at:
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fees,
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tie-ins,
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flexibility,
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and your plan for the next 1–2 years.
Trap 3: Leaving it too late
Late decisions remove options. Start planning 90 days out.
Trap 4: Not aligning with the next property move
A renewal decision can either support your next purchase — or block it.
A simple action plan (do this in 30 minutes)
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Confirm renewal date + any ERCs
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Get the lender’s product transfer options in writing
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Write your 12–24 month plan (sell/buy/raise funds/works?)
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Compare total cost + flexibility, not just rate
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If unclear, get a structured review so you know what’s realistic
Want help comparing your options?
If your landlord mortgage deal is ending and you’re weighing up a product transfer versus a remortgage, we can help you map the most sensible next steps based on your goals and timescales.
Telephone: 01352 721300
Email: mortgages@netrent.co.uk
Important information
Mortgage advice is provided by our trusted partner, DNA Financial Solutions, who are authorised and regulated by the Financial Conduct Authority (FCA).
This article is for information only and does not constitute financial advice.
Disclaimer: NetRent does not provide legal advice and these articles represent our understanding of rental property law.