The borrowers coming to the end of their existing fixed rate buy-to-let (BTL) mortgage have an important decision to make, should they stick or twist? Should they stay with their existing lender and opt for a product transfer (PT) or remortgage with a new lender?

The choice has not always been simple due to the availability of product transfers available from different lenders. However, for specialist BTL scenarios in particular, transferring from one lender to another can be difficult due to the complexity of the borrower’s requirements. It is important that brokers have the knowledge of both options and know the differences between the two when making informed decisions for their clients.

Read on as we outline the differences between a product transfer and a remortgage, before deciding what the best option is for your clients.

Product transfers are typically much quicker than a remortgage, as it involves staying with the existing lender, but switching to a new mortgage deal. As a broker, you will avoid the full remortgage application as you can use the existing case details to apply in a matter of minutes. Efficiency at it’s finest.

If your clients are after a better deal than what their existing lender is offering, a remortgage is the route to go down. A remortgage will allow your clients to explore the various options available to them in the market and benefit from better terms and lower rates.

To avoid additional fees throughout the process of sourcing a new buy-to-let mortgage, a product transfer is the most sensible option. A remortgage requires legal work, new valuation fees and application fees. Although there are a few costs involved with a remortgage, there are steps landlords can take to reduce them slightly, such as conducting am automated valuation model (AVM) which will also speed up the process.

Weighing up the options

Whilst a product transfer is simpler with fewer steps and fees, it is important to weigh up the option of a remortgage too, to decide whether switching is more suitable for your clients. There is no right or wrong option, the decision will vary depending on the client and their individual circumstances and as a broker it is important you offer versatility to meet their needs.

If you need assistance with your landlord clients who are coming to the end of their existing buy-to-let loan term, Crystal Specialist Finance is the clear choice. We work with lenders big and small and offer specialist solutions tailored to your clients’ individual needs. Experience specialist finance the Crystal way with our award-winning service, speedy processes and flexible finance options.

Call our New Business Advisers on 01827 337710 or enquire through our CrystalHUB for a quote today.

Find out more about our buy-to-let offering here.